In Order for the Price System to Have Satisfied the Exacting

question 143

Multiple Choice

In order for the price system to have satisfied the exacting requirements for efficiency,

• A)MU must equal MC for each and every commodity.
• B)the average cost of producing each good must be equal to its MU.
• C)the maximum possible of total economic profit must be produced.
• D)every consumer's MU will be equal to marginal physical product.

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Definitions:

Redistributes Income

The process by which government policies, taxation, and public spending aim to adjust the allocation of income across a society.

Efficiency

describes the extent to which resources are allocated in a way that maximizes the output or outcome, often considering waste minimization and optimal allocation in economic contexts.

Equality

A condition of parity, particularly in matters of status, rights, and chances.

Economic Pie

A metaphorical term indicating the total amount of wealth or resources available for distribution within an economy.