For Economic Efficiency, Which of the Following Conditions Should Be

question 190

Multiple Choice

For economic efficiency, which of the following conditions should be met?

• A)Scarcer goods should have lower prices.
• B)More abundant goods should have lower prices.
• C)More abundant goods should have higher prices.
• D)All goods should have equal prices.

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Definitions:

Manufacturer

A person or company that makes goods for sale, especially on a large scale.

Output Contracts

Agreements in which a seller agrees to sell all the output of a certain product to a particular buyer.

Requirements Contracts

Contracts where one party agrees to purchase all of its needs for a particular commodity from the other party for a certain period.

Common Law

A body of laws based on judicial decisions and customs, rather than statutory laws passed by a legislature.