Two Goods Are Said to Be Allocated Efficiently Between Consumers

question 23

Multiple Choice

Two goods are said to be allocated efficiently between consumers when _____.

• A)both goods give the consumers the same total utility
• B)there are no trades that will make one of the consumers strictly worse off
• C)one consumer is as well off as possible,given the utility of the other consumer
• D)both the consumers are maximizing utility

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Definitions:

Anecdotal Evidence

Evidence based on personal testimonies.

Testimony

A formal written or spoken statement, especially one given in a court of law.

Experience

The knowledge or skill acquired by a person through direct involvement in or exposure to events or activities over time.

Evidence

Information, facts, or data supporting or disproving a claim, theory, or argument.