Economic Efficiency Is Achieved When There Is a Market Outcome

question 56

Multiple Choice

Economic efficiency is achieved when there is a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production and

• A)economic surplus plus consumer surplus equals producer surplus.
• B)consumer surplus plus producer surplus is maximized.
• C)economic surplus is minimized.
• D)the difference between consumer surplus and producer surplus is maximized.

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Definitions:

Lend-Lease Act

1941 law that permitted the United States to lend or lease arms and other supplies to the Allies, signifying increasing likelihood of American involvement in World War II.

Nonaggression Treaty

An agreement between two or more nations not to attack each other, often part of broader peace initiatives.

Military Aid

Assistance provided by one country to another in the form of defense equipment, training, or other support services for military purposes.

Commercial Activities

Business operations and transactions involving the exchange of goods and services with the objective of earning profit.