If resources are allocated efficiently in a market economy:
A) the way final goods and services are distributed does not matter to society.
B) the outcome may not be socially desirable if distributional issues are also important.
C) the outcome will always be socially desirable.
D) each person's utility is maximized, and so the result is Pareto optimal.

Question

Quizplus · Accepted Answer

Efficient allocation of resources does not guarantee a socially desirable outcome if the distribution of goods and services is unequal or unfair, which can lead to social issues.

If Resources Are Allocated Efficiently in a Market Economy