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:

Apothecary Unit

Historical term referring to a system of measurement used by pharmacists to prepare, mix, and dispense medicinal drugs, now largely replaced by the metric system.

Measurement

The process of obtaining a quantitative comparison between a predefined standard and an unknown quantity.

Fractions

Mathematical expressions representing the division of one quantity by another, indicating parts of a whole.

Denominators

The bottom number in a fraction, representing the total number of parts the whole is divided into.