A Free Market Maximizes the Gains from Trade, the Sum

question 231

Multiple Choice

A free market maximizes the gains from trade, the sum of consumer and producer surplus, meeting all of the following conditions EXCEPT:

• A) all buyers who are willing to pay positive prices are able to receive goods from trade.
• B) the supply of goods is bought by the buyers with the highest willingness to pay.
• C) the supply of goods is sold by the sellers with the lowest costs.
• D) there are no unexploited gains from trade between buyers and sellers.

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Definitions:

Preemption

The process by which the courts decide that a federal statute must take precedence over a state statute.

State Statute

A state statute is a written law passed by a legislative body at the state level, governing matters not reserved for the federal government.

DACA Order

A directive under the Deferred Action for Childhood Arrivals, allowing certain undocumented individuals brought to the U.S. as children to receive a renewable period of deferred action from deportation and eligibility for a work permit.

Due Process Clause

A constitutional guarantee that prohibits the government from depriving individuals of life, liberty, or property without fair legal procedures.