The statement: "If everyone trades in the competitive marketplace, all mutually beneficial trades will be completed, and the resulting equilibrium allocation of resources will be economically efficient." is formally known as:
A) the law of supply and demand.
B) the first theorem of supply and demand.
C) the first theorem of welfare economics.
D) the first theorem of efficiency in economics.
C
Economics
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Holding everything else constant, the demand for a good tends to be more elastic
A) the more substitutes there are for the good. B) the shorter the time period involved. C) the more consumers perceive the good to be a necessity. D) the less important the product is in consumers' budgets.
Economics
When private benefits equal social benefits, it means that:
A. positive externalities are present in the market. B. negative externalities are present in the market. C. positive externalities are not present in the market. D. no externality of any kind is present in the market.
Economics