Efficiency Is an Important Goal Because When Markets Are Efficient

question 53

Multiple Choice

Efficiency is an important goal because when markets are efficient:

• A)there is less income inequality.
• B)the poor benefit more than the wealthy.
• C)there are more resources available to achieve other goals.
• D)there is no need for government intervention in the economy.

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Definitions:

Profit-maximizing

The process or strategy of adjusting production and sales to achieve the highest possible profit under given market conditions.

Product Price

The monetary cost consumers are required to pay to acquire a good or service.

Market Wage Rate

The prevailing rate of pay for a particular job in a specific market or geographical area.

Employ

To hire or use the services of someone or something for a particular purpose or job.