Which of the Following Is True? When There Are No

question 64

Multiple Choice

Which of the following is true? When there are no externalities,public goods,common resources,taxes or subsidies,then
i.allocative efficiency occurs when marginal benefit exceeds marginal cost by as much as possible.
ii.an a competitive equilibrium,resource allocation is efficient.
iii.fair rules require income transfers from the rich to the poor.

• A) only ii
• B) only i
• C) only iii
• D) i and ii
• E) i and iii

---

Definitions:

Founders

Individuals who establish an organization or company, often bringing an innovative idea into existence.

Willing To Take A Risk

The readiness to engage in actions that involve uncertainty or danger, typically in pursuit of a significant reward.

Small-Business Start-Ups

Newly established small businesses in the early stages of operation, often characterized by innovation and growth potential.

Online Resources

Digital materials available on the Internet, including websites, databases, and multimedia content, intended for informational or educational purposes.