When Economists Say That Market Equilibrium Is Consistent with Economic

question 78

Multiple Choice

When economists say that market equilibrium is consistent with economic efficiency, they mean

• A) the total gains from trade (the combined area of producer and consumer surplus) are smaller than potentially could be the case at a different price and quantity.
• B) all units creating more benefit than cost have been produced.
• C) some units have been produced that cost more than the benefits they create.
• D) consumers and producers have made decisions without properly taking into account the market price.

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Definitions:

Performance Review

A formal assessment where an employee's work performance is evaluated, often to inform decisions on promotions, pay raises, and development.

Dissimilar Fillers

are non-relevant stimuli used in memory and recognition tasks in experiments to prevent participants from using cues or patterns in the test material to aid their recall or recognition.

Mistaken Identifications

Incorrectly recognizing a person or item as being someone or something else, often leading to false assumptions or judgments.

Incorrect Rejections

The error in a decision-making process where a correct or valid option is dismissed or not accepted.