When a Market Is Efficient,the

question 98

Multiple Choice

When a market is efficient,the

• A) sum of consumer surplus and producer surplus is maximized.
• B) deadweight gain is maximized.
• C) quantity produced is maximized.
• D) marginal benefit of the last unit produced exceeds the marginal cost by as much as possible.
• E) total benefit equals the total cost.

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Definitions:

Democratic Globalization

The spread of democracy around the world and the integration of democratic norms and values into international relations and institutions.

Decreases Political Stability

A reduction in the ability of a governmental system to provide consistent governance and policy, often leading to uncertainty, unrest, or conflict.

Basic Needs

Fundamental requirements necessary for individuals to live a healthy and satisfactory life, such as food, water, shelter, education, and healthcare.

Investment Climate

The economic, financial, and socio-political environment influencing the willingness and ability of individuals and firms to invest in a particular country or region.