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The market system is said to be efficient because it allocates resources to who

ID: 1143450 • Letter: T

Question

The market system is said to be efficient because it
allocates resources to who wants them. creates fewer goods and services than other systems. requires more labor than any other system. determines the price. takes fewer resources to work than any other system. The market system is said to be efficient because it
allocates resources to who wants them. creates fewer goods and services than other systems. requires more labor than any other system. determines the price. takes fewer resources to work than any other system. allocates resources to who wants them. creates fewer goods and services than other systems. requires more labor than any other system. determines the price. takes fewer resources to work than any other system. allocates resources to who wants them.

Explanation / Answer

allocates resources to who wants them

PERFECT MARKET--

no barriers to market entry
- perfect information by buyers and sellers
- no transaction costs or overheads
- perfectly rational buyers and sellers
- lots of buyers and sellers so no one has any market power (no "brands", no product differentiation)