Choose the Statement That Is Incorrect

question 114

Multiple Choice

Choose the statement that is incorrect.

• A)Resources are used efficiently when marginal social benefit equals marginal social cost.
• B)Competitive equilibrium achieves an efficient outcome.
• C)Competitive equilibrium maximizes the gains from trade.
• D)When firms in perfect competition are away from long-run equilibrium,either entry or exit is taking place and the market is still efficient.
• E)Producer surplus is maximized at the competitive equilibrium.

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Definitions:

Economic Conditions

The state of the economy at a given time, including factors such as GDP, unemployment rates, and inflation.

Income Velocity of Money

A measure of how quickly money in circulation is used for purchasing goods and services, calculated as the ratio of nominal GDP to a country's total money supply.

Non-interventionists

Advocates or policies favoring minimal political or military involvement by a country in international affairs.

Keynesian Economists

Economists who follow the principles of Keynesian economics, emphasizing the role government policy and fiscal measures play in managing economic cycles.