Which of the following best describes efficiency in the demand and supply model?
a. The economy is receiving as much benefit as possible from its scarce resources and all the possible gains from trade have been achieved.
b. The economy is receiving as much benefit as possible from its scarce resources but not achieving all the possible gains from trade.
c. The economy is not receiving as much benefit as possible from its scarce resources but is getting all the possible gains from trade.
d. The economy is not receiving as much benefit as possible from its scarce resources and not achieving all the possible gains from trade.
a. The economy is receiving as much benefit as possible from its scarce resources and all the possible gains from trade have been achieved.
You might also like to view...
If I use 1,000 gallons of water a month at a price of $.01 a gallon, is my consumer surplus likely to be large or small? Explain
How can it be that the U.S. spends more on education than many other nations, and achieves far worse results? What may be the underlying reason?