Markets Fail to Allocate Resources Efficiently When

question 37

Multiple Choice

Markets fail to allocate resources efficiently when

• A)demanders and suppliers cannot agree on a price.
• B)goods are rival in consumption and excludable.
• C)property rights are not well established.
• D)too many buyers and sellers exist in the same market.

---

Definitions:

February

February is the second month of the year in the Gregorian calendar, known for having 28 days in common years and 29 days in leap years.

May

The fifth month of the year in the Gregorian calendar.

Labor Efficiency Variance

The difference between the actual labor hours used in production and the standard hours expected, multiplied by the standard labor rate.

Labor Rate Variance

The difference between the actual hourly wage paid to workers and the standard or expected wage rate, multiplied by the total hours worked.