Markets Will Always Allocate Resources Efficiently

question 135

True/False

Markets will always allocate resources efficiently.

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Definitions:

Substitute Good

A product or service that can be used in place of another to satisfy similar needs or wants, thereby affecting its demand.

Complementary Good

A product or service that is used together with another product or service, increasing demand for one another.

Normal Good

A type of good for which demand increases as the income of the consumer increases.

Popcorn

A type of corn kernel which expands and puffs up when heated, commonly seasoned and served as a snack.