Which of the Following Contributes to the Efficiency of Markets

question 11

Multiple Choice

Which of the following contributes to the efficiency of markets?

• A)Governments play an active role in the day-to-day operations of markets.
• B)Markets are able to bring about an equitable distribution of goods and services.
• C)Markets promote equal standards of living.
• D)Markets promote competition and voluntary exchange.

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Definitions:

Market Price

The rate at which goods or services can presently be bought or sold within the marketplace.

Optimal Short-Run Output

The level of production that maximizes a firm's short-term profits or minimizes its losses, given its fixed costs.

All-Natural Ice Cream

Ice cream made only with natural ingredients, without artificial flavors, colors, or preservatives.

Market Price

The contemporary market value at which a service or asset is accessible for sale or purchase.