In General (And in the Absence of Market Failures), Economic

Multiple Choice

In general (and in the absence of market failures) , economic surplus will be maximized and economic efficiency will be achieved

A) when consumers and producers can agree on the most advantageous division of economic surplus.
B) when the government is able to impose an equilibrium price.
C) when resources are allocated such that production of the good is maximized.
D) in a competitive market where price is free to achieve its market- clearing equilibrium level.
E) when the government successfully determines what is best for society as a whole.