If an Allocation of Resources Is Efficient, Then

question 174

Multiple Choice

If an allocation of resources is efficient, then

• A)consumer surplus is maximized.
• B)producer surplus is maximized.
• C)all potential gains from trade among buyers are sellers are being realized.
• D)the allocation achieves equality as well.

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Definitions:

Express Authorization

Explicit permission granted by one party to another to perform actions or activities on its behalf.

Principal

In agency law, one under whose direction an agent acts and for whose benefit that agent acts.

Implied Trust

A trust not created by explicit words but inferred by law to avoid injustice or to reflect the presumed intention of the parties involved.

Unjust Enrichment

A legal principle where one party is unjustly benefited at the expense of another, often requiring restitution to the party disadvantaged.