When Economists Say That Market Equilibrium Is Consistent with Economic

question 78

Multiple Choice

When economists say that market equilibrium is consistent with economic efficiency, they mean

• A) the total gains from trade (the combined area of producer and consumer surplus) are smaller than potentially could be the case at a different price and quantity.
• B) all units creating more benefit than cost have been produced.
• C) some units have been produced that cost more than the benefits they create.
• D) consumers and producers have made decisions without properly taking into account the market price.

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Definitions:

Mild Memory Loss

A slight but noticeable decrease in memory capabilities, often seen as a normal part of aging, but can also be an early sign of cognitive decline.

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Fixed beliefs with no basis in reality.

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Perceptions in the absence of external stimuli, such as seeing, hearing, or feeling something that isn't there.

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The occurrence of symptoms or the diagnosis of a disease or condition at an earlier age than is typical or expected.