The Price System Will Allocate Resources Efficiently Except When

question 308

Multiple Choice

The price system will allocate resources efficiently except when

• A) consumers decide they want more of a good.
• B) no externalities exist.
• C) farmers decide to produce more corn.
• D) market failures exist.

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Definitions:

Trade Barriers

Any regulation or policy that restricts international trade, including tariffs, quotas, and non-tariff barriers, aimed at protecting domestic industries.

Farm Programs

Government initiatives designed to provide financial support and stabilization to the agriculture sector through subsidies, price supports, and conservation efforts.

United States

A country located in North America, known for its diverse geography, culture, and economy.

European Union

A political and economic union of 27 European countries that are located primarily in Europe, aiming to ensure the free movement of people, goods, services, and capital among its members.