One measure of market inefficiency is
A) the size of the deadweight loss.
B) the size of the economic surplus.
C) how far quantity exchanged deviates from equilibrium.
D) how far market price deviates from equilibrium.
E) the difference between total economic surplus and deadweight loss.

Question

Quizplus · Accepted Answer

Deadweight loss represents the loss of economic efficiency when the equilibrium outcome is not achieved, making it a measure of market inefficiency.

One Measure of Market Inefficiency Is