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

---

Definitions:

Trade Restrictions

Regulations or policies that governments impose to control the amount and types of goods and services that can be imported or exported, affecting international trade.

United States and Mexico

are neighboring countries in North America, sharing a long border and involved in significant trade, diplomatic, and cultural exchanges.

Dumping

The practice of exporting goods at prices lower than the home market prices, often considered unfair trade and subjected to penalties.

Producing Country

A nation that is engaged in the extraction or creation of goods and services for sale.