Which Statement Is FALSE

question 68

Multiple Choice

Which statement is FALSE?

• A)Efficiency exists when an economy realizes the maximum possible gains from trade given the available resources.
• B)If an economy is efficient,it is possible to make only a few people better off without reducing other individuals' economic welfare.
• C)Economic efficiency exists when all opportunities to make people better off have been fully exploited.
• D)Free markets usually lead to efficiency,but not necessarily equity.

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Definitions:

Economic Profits

The difference between total revenues and total costs, including both explicit and implicit costs, signaling the overall profitability from an economic standpoint.

Perfectly Inelastic

A situation in economics where the quantity demanded or supplied does not change in response to changes in price.

Price Of Oil

The cost per barrel of crude oil, which fluctuates based on geopolitical, supply, and demand factors.

West Texas

A region in the state of Texas known for its significant oil production, desert landscapes, and cultural heritage.