An Efficient Allocation of Resources Would Be Characterised By

question 128

Multiple Choice

An efficient allocation of resources would be characterised by:

• A)a good being produced by the sellers with lowest cost
• B)a shortage at the current market price
• C)a good is not being bought by the buyers at highest value
• D)all of the above are correct

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Definitions:

Insured Risk

A risk that has been covered by an insurance policy, transferring the financial burden of a potential loss from the insured to the insurer.

Asymmetric Information

Asymmetric information occurs when one party in a transaction has more or better information than the other, leading to an imbalance in the decision-making process.

Unsuspecting Buyer

A consumer who purchases goods or services without being aware of all the relevant information, often leading to disadvantageous situations.

Auto Transmission

A type of vehicle transmission that automatically changes gear ratios as the vehicle moves, without input from the driver.