Economic Efficiency Is Achieved When There Is a Market Outcome

question 56

Multiple Choice

Economic efficiency is achieved when there is a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production and

• A)economic surplus plus consumer surplus equals producer surplus.
• B)consumer surplus plus producer surplus is maximized.
• C)economic surplus is minimized.
• D)the difference between consumer surplus and producer surplus is maximized.

---

Definitions:

Conventional Monetary Policy

Central bank actions involving the manipulation of interest rates and control of the money supply to influence economic activity.

Interest Rates

The cost of borrowing money or the return on investment, expressed as a percentage, indicative of the price of credit in the economy.

Borderless World

The concept of a world where barriers to trade, communication, and movement are minimal or non-existent, promoting global integration.

Kenichi Ohmae

Kenichi Ohmae is a Japanese organizational theorist, consultant, and the author of several books on business strategy renowned for his work on global strategy and the "borderless world."