A Market Equilibrium Is Only Efficient When

question 105

Multiple Choice

A market equilibrium is only efficient when:

• A)buyers and sellers each earn equal surplus from the transaction.
• B)consumer surplus and producer surplus are both zero.
• C)all relevant costs,including those imposed on others,are accounted for.
• D)income is distributed equitably.

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Definitions:

Self-Actualization

The realization or fulfillment of one's talents and potentialities, often considered as a drive or need present in everyone.

Inborn Potential

The inherent capacity or natural ability present from birth that can develop into talents or skills with encouragement and practice.

Abraham Maslow

An American psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone, the highest level in Maslow's hierarchy of needs.