At an Efficient Market Outcome

question 212

Multiple Choice

At an efficient market outcome,

• A) consumer surplus exceeds producer surplus.
• B) producer surplus exceeds consumer surplus.
• C) the sum of consumer surplus and producer surplus is maximized.
• D) marginal benefit is maximized.
• E) the sum of consumer surplus and producer surplus is minimized.

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Definitions:

Arousal Theory

A theory in psychology that suggests there is an optimal level of arousal for each individual that leads to the best performance on tasks; too little or too much arousal can decrease performance.

Equipotentiality Theory

The concept that various parts of the brain can take over the functions of other parts if those parts are damaged.

Effortful Processing

A type of information processing that requires a significant amount of attention and conscious effort in order to encode information into memory.

Automatic Processing

The unconscious encoding of incidental information such as space, time, and frequency, and of well-learned information.