A Free Market Maximizes the Gains from Trade, the Sum

question 231

Multiple Choice

A free market maximizes the gains from trade, the sum of consumer and producer surplus, meeting all of the following conditions EXCEPT:

• A) all buyers who are willing to pay positive prices are able to receive goods from trade.
• B) the supply of goods is bought by the buyers with the highest willingness to pay.
• C) the supply of goods is sold by the sellers with the lowest costs.
• D) there are no unexploited gains from trade between buyers and sellers.

---

Definitions:

Exclusive Group

A select group of individuals or entities with special privileges or access not available to others.

SaaS

Software as a Service, a cloud computing model where users access software applications over the Internet, usually on a subscription basis, without needing to maintain or install software locally.

Delivery Model

The method or structure used by organizations to provide goods or services to their customers.

Server Farms

Massive data centers, which may contain hundreds of thousands of networked computer servers.