Asked by Aiden Fraser on Jun 18, 2024
Verified
Freely functioning markets in the real world always result in efficient allocations of resources.
Efficient Allocations
The optimal distribution of resources among competing uses to achieve the highest overall level of welfare or utility.
- Gain an understanding of the concepts related to market efficiency and equity.
Verified Answer
SC
Shaniyah ChambersJun 23, 2024
Final Answer :
False
Explanation :
In the real world, markets can be inefficient due to externalities, market power, information asymmetries, and public goods, among other reasons, which can lead to suboptimal allocation of resources.
Learning Objectives
- Gain an understanding of the concepts related to market efficiency and equity.