When a Market Is Efficient

question 78

Multiple Choice

When a market is efficient,

• A)there is no exchange that can make anyone better off without someone becoming worse off.
• B)a central planner must be involved.
• C)only increased prices can benefit those involved.
• D)None of these is true.

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Definitions:

Current Liability

A company's debts or obligations that are due within one year or within the normal operating cycle.

Sales Tax

A tax levied by the government on the sale of goods and services.

Credit Sales

Credit sales are transactions where goods or services are provided to a customer with the agreement that payment will be made at a later date.

Liability Classification

The process of categorizing liabilities on the balance sheet as either current (due within one year) or long-term.