Economists say that a market where goods are not consumed by those valuing the goods most highly is
a. laissez-faire..
b. unequal.
c. inefficient.
d. rational.
c
You might also like to view...
The Coase theorem is the proposition that if property rights exist, the number of parties is small, and transactions costs are low
A) external costs result in deadweight losses. B) external benefits result in deadweight losses. C) private transactions are efficient. D) public transactions are efficient.
In the arena of decision making, the choice that will automatically take place if the chooser fails to make an active decision is called the:
A. choice option. B. default option. C. processing option. D. auto option.
Exhibit 21-1 Production possibilities curves
?
In Exhibit 21-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. Suppose Pada produces at point B on its PPC. How much corn is the country able to produce?
A. 2. B. 15. C. 10. D. 6.
Consider a society consisting of just a farmer and a tailor. The farmer has 10 units of food but no clothing. The tailor has 20 units of clothing but no food. Suppose each has the utility function U = F ? C. Derive the contract curve
What will be an ideal response?