________ is concerned with the distribution of resources across ...

[laurencescou]

________ is concerned with the distribution of resources across society.
 
  A) Social surplus
  B) Equity
  C) Efficiency
  D) Utility

Question 2

A local bar provides free pretzels and peanuts and cheap drinks on a Monday night. But soon a fight breaks out in the parking lot between two quarreling patrons. Neighboring homeowners awaken as a result, and call the police.
 
  What can we clearly conclude? A) The bar's free pretzels and peanuts generate a positive externality.
  B) Each fighter imposes a negative externality on the other fighter.
  C) The fighters impose a negative externality on the neighboring homeowners.
  D) The neighboring homeowners impose a negative externality on the police.
  E) All of the above are true.

[bubulittle310@msn.cn]

Answer to Question 1

B

Answer to Question 2

C