A Condition Necessary for a Market to Achieve Economic Efficiency

question 135

Multiple Choice

A condition necessary for a market to achieve economic efficiency is that the market:

• A) demand curve must include all opportunity costs imposed on society of producing the good.
• B) demand curve must exclude the willingness to pay of all members of society who benefit from the good.
• C) supply curve must include the willingness to pay of all members of society who benefit from the good.
• D) supply curve must include all opportunity costs imposed on society of producing the good.

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Definitions:

December 31

The last day of the year in the Gregorian calendar, commonly associated with the closing of fiscal and calendar year accounts.

Cash Equivalents

Investments of a short duration that are easily turned into fixed cash amounts and carry minimal risk of varying in worth.

Interest Rate Changes

Interest rate changes refer to the fluctuation of the cost of borrowing money or the return on investment, directly affecting economic activities such as loans and savings.

December 31

The last day of the year, commonly used as the end date for annual financial statements and reports.