Among the sources of economic inefficiency are all of the following EXCEPT
A) taxes.
B) subsidies.
C) external costs.
D) competition.

Question

Quizplus · Accepted Answer

Competition typically leads to more efficient allocation of resources in an economy, as it encourages innovation, productivity, and lower prices, unlike taxes, subsidies, and external costs, which can distort market outcomes and lead to inefficiency.

Among the Sources of Economic Inefficiency Are All of the Following