An inefficient allocation of resources will occur when:
A) decisionmakers are faced with the costs and benefits of their actions.
B) there are clearly defined property rights.
C) no alternative exists that would increase the welfare of society.
D) decisionmakers are not faced with the benefits and costs of their choices.

Question

Quizplus · Accepted Answer

An inefficient allocation of resources occurs when decisionmakers are not faced with the benefits and costs of their choices. This means that they are not taking into account the full picture of how their decisions impact the allocation of resources in society. This can result in resources being allocated in a way that does not maximize societal welfare and efficiency. Therefore, option D is the correct answer.

An Inefficient Allocation of Resources Will Occur When