When Economists Describe a Market for a Specific Product as Being

question 89

Multiple Choice

When economists describe a market for a specific product as being economically "efficient," what do they mean?

• A)Production techniques are such that resources are used in the most technologically efficient manner.
• B)Consumption of the product is such that economic surplus is maximized.
• C)Production of the product is such that economic surplus is maximized.
• D)The quantity of the product produced and consumed is such that the economic surplus is maximized.
• E)There are no price controls in place in that market.

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Definitions:

Indirect Discrimination

Practices or policies that appear neutral but have a disproportionate negative effect on a particular group.

Metering Strategy

A pricing strategy where the usage of a product or service is measured and charged for based on the amount consumed.

Consumer Surplus

The difference between the total amount consumers are willing to pay for a good or service and the total amount they actually pay.

Package Together

The process of combining different products or services for sale as one combined offer.