If an Allocation of Resources Is Efficient, Then

question 174

Multiple Choice

If an allocation of resources is efficient, then

• A)consumer surplus is maximized.
• B)producer surplus is maximized.
• C)all potential gains from trade among buyers are sellers are being realized.
• D)the allocation achieves equality as well.

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Definitions:

Seasoned Equity Issue

The process by which a company that is already publicly traded issues additional shares to raise new equity capital.

Supply And Demand

The economic model that determines the price of anything in a market, based on the quantity of goods available and consumers' desire for them.

Underpricing

The practice of setting the initial offering price of a security, such as a stock, below its market value.

Filing Fees

Charges associated with submitting documents to a government agency or regulatory body for approval or registration.