Which of the Following Generates Allocative Efficiency in a Market

question 203

Multiple Choice

Which of the following generates allocative efficiency in a market economy?

• A)national government intervention
• B)voluntary exchange between buyers and sellers
• C)United Nations rules for competition
• D)equity

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Definitions:

Supplies Used

This term refers to the amount of supplies that have been consumed or utilized during a specific period in business operations.

Adjustment

A modification made to rectify the balance of an account, to reflect accrued expenses or revenues, or to correct errors.

Balance Sheet

An accounting summary showing the assets, liabilities, and owner's equity of a company on a given date.

Retainer Fee

A payment made in advance to hire or retain professional services, ensuring availability over a specific period.