Prices above the free market equilibrium price are inefficient because:
A. no one can be made better off without hurting someone by participating in another transaction.
B. they prevent mutually beneficial transactions.
C. all mutually beneficial transactions happen.
D. more goods could be produced using society's resources.
Answer: B
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The capital deepening model developed by Robert Solow shows the links among which three items?
What will be an ideal response?
It is easier to avoid state and local taxes than federal taxes.
A. True B. False C. Uncertain
What happens when the central bank decides it will sell bonds using open market operations?
a. Interest rates decrease. b. The money supply increases. c. The money supply decreases. d. The money supply is unaffected.
Profit can be defined as the
a. difference between the sales revenue of a business firm and the opportunity cost of the resources required to produce the goods supplied by the firm. b. difference between a company's income and direct monetary costs of production. c. difference between the price of a product and the consumer's valuation of the good. d. amount of total revenue earned by the firm minus its payments to stockholders.