Which of the Following Statements Expresses the Justification for Making

question 85

Multiple Choice

Which of the following statements expresses the justification for making efficiency the first goal of economic interaction?

• A)Efficiency gives the poor an incentive to improve their economic status.
• B)Since the consensus on what is a fair distribution of goods is impossible,efficiency is the next best goal.
• C)People are not really concerned about the problems of the poor.
• D)Efficiency maximizes total economic surplus and thereby allows other goals to be more fully achieved.

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Definitions:

Homogeneous Product

A product that is identical in quality and specifications no matter its source, making it indistinguishable across producers.

Price Searchers

Firms or individuals who determine the selling price of their goods or services with some degree of market power, enabling them to influence prices.

Price Takers

Participants in a market who accept the market price as given and have no influence over it, typically because of the competitive nature of the market.

Legal Structure

The framework within which a business operates, including its designation as a corporation, partnership, sole proprietorship, or other legal entity.