An Efficient Allocation of Goods in an Exchange Economy Means

question 116

Multiple Choice

An efficient allocation of goods in an exchange economy means that:

• A) goods were produced by the most efficient technology available.
• B) no one can be made better off without making somebody else worse off.
• C) those made worse off are not hurt as badly as the benefits resulting from those made better off. That is, there is a net positive gain.
• D) in a particular production process one gets the maximum output for a given input.