Markets Are Efficient When

question 137

Multiple Choice

Markets are efficient when

• A) consumer surplus is maximized.
• B) total surplus is maximized.
• C) they deviate from equilibrium.
• D) consumer surplus is equal to producer surplus.

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Definitions:

Proportional Representation

An electoral system in which parties gain seats in proportion to the number of votes cast for them, aiming for a more representative alignment of legislative seats to popular support.

Socialist Economic System

A political and economic theory advocating for the means of production, distribution, and exchange to be owned or regulated by the community as a whole.

Collective Ownership

The shared control and ownership of assets, resources, or enterprises among a group of people or within a community, as opposed to individual privatization.

Bureaucracy

An organizational structure characterized by standardized procedures, hierarchical divisions, and a clear set of rules guiding operations.