In an Efficient Economy

question 77

Multiple Choice

In an efficient economy,

• A)no one could be made better off by a change in the way goods are allocated
• B)revenue for all firms is maximized
• C)a change in the way goods are allocated could make someone worse off
• D)goods are allocated fairly among individuals
• E)no one would be made worse off if there is a change in the way goods are allocated

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Definitions:

Nonlabor Income

Income received from sources other than employment, such as investments, pensions, or inheritances.

Wage Rate

The fixed or variable payment earned by employees for their work or services, typically documented on an hourly, daily, or piecework basis.

Indifference Curves

A graph showing different bundles of goods between which a consumer is indifferent, illustrating preferences and trade-offs.

Market Prices

The current price at which a good or service can be bought or sold in a marketplace, determined by supply and demand dynamics.