If a Market Is Efficient, Then

question 14

Multiple Choice

If a market is efficient, then

• A) the market allocates buyers to the sellers who can produce the good at least cost.
• B) all of these answers.
• C) the quantity produced in the market maximises the sum of consumer and producer surplus.
• D) the market allocates output to the buyers that value it the most.

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Definitions:

Type A Behavior Pattern

A personality trait characterized by high levels of competitiveness, aggressiveness, impatience, and a constant sense of urgency, often associated with an increased risk of heart disease.

Type B Behavior Pattern

A personality type characterized by relatively relaxed, non-urgent approach to life, in contrast to the more intense, competitive nature of Type A behavior.

External Locus of Control

The belief that outcomes in one's life are due to external forces beyond one's control rather than one's own actions.

General Adaptation Syndrome

A three-stage process that describes the physiological changes the body goes through when under stress: alarm, resistance, and exhaustion.