If the Market for Bicycles Is Efficient,then

question 106

Multiple Choice

If the market for bicycles is efficient,then

• A) no more bicycles can be produced.
• B) marginal benefit exceeds marginal cost.
• C) consumer surplus must be greater than producer surplus.
• D) it is not possible to produce more bicycles without sacrificing another, more highly valued good.
• E) consumer surplus must equal producer surplus.

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Definitions:

Defense Mechanisms

Psychological strategies employed by individuals to cope with reality and maintain self-image by unconsciously denying or distorting reality.

Reaction Formation

A defense mechanism where unacceptable impulses are transformed into their opposite in one's consciousness.

Repression

A defense mechanism in psychoanalytic theory where uncomfortable thoughts, memories, or desires are pushed out of conscious awareness.

Topographical Model

A Freudian theory in psychology which divides the human mind into the conscious, preconscious, and unconscious parts.