Which statement is FALSE?
A)Efficiency exists when an economy realizes the maximum possible gains from trade given the available resources.
B)If an economy is efficient,it is possible to make only a few people better off without reducing other individuals' economic welfare.
C)Economic efficiency exists when all opportunities to make people better off have been fully exploited.
D)Free markets usually lead to efficiency,but not necessarily equity.

Question

Quizplus · Accepted Answer

If an economy is efficient, it is possible to make some people better off only by making others worse off. This is because efficiency simply means that resources are being allocated to their highest valued use, not necessarily that everyone is benefiting equally. In fact, it is possible for some individuals to be worse off in an efficient economy if the resources are being allocated to goods or services that they do not value as much. Therefore, statement B is false.

Which Statement Is FALSE