Which of the following generates allocative efficiency in a market economy?
A) United Nations rules for competition B) equity
C) voluntary exchange between buyers and sellers D) national government intervention
C
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Producers play a disproportionately large role in influencing public regulation because they have a strong interest in matters that affect their specialized source of income
a. True b. False
If people voluntarily bring their recyclable materials to a recycling center, these materials reduce landfill space, reduce the need for virgin material extraction, and provide an inexpensive input in many production processes. This results in
a. an increase in the externalities associated with producing goods b. mandatory recycling c. an increase in private costs of producing goods d. a narrowing of the gap between private and social costs of producing goods