If There Are No Externalities, a Competitive Market Achieves Economic

question 161

Multiple Choice

If there are no externalities, a competitive market achieves economic efficiency.If there is a negative externality, economic efficiency will not be achieved because

• A)too little of the good will be produced.
• B)too much of the good will be produced.
• C)a deadweight loss will occur that is equal to the area under the demand curve for the good.
• D)economic surplus is maximized.

Be aware of the enforceability of different types of contracts and agreements under specific conditions.

Understand the legal distinctions between unilateral and bilateral contracts.

Understand the fundamental principles and rules of contract law.

Recognize the conditions under which a contract is formed, including the offer, acceptance, and consideration aspects.

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Definitions:

Germination

The process by which a plant grows from a seed.

Fertilization

The union of a sperm cell with an egg cell, leading to the formation of a zygote and the initiation of embryonic development.

Pollination

The process of transferring pollen from the male part of a flower to the female part, resulting in the fertilization and production of seeds.

Seed

A seed is the reproductive unit of a flowering plant, encapsulating an embryo and nutrients for germination, potentially growing into a new plant.