At a birthday party, all the little boys and girls were given various gifts. Some of the boys and girls traded their gifts with one another until everyone was completely happy. This example reflects:

Question

Quizplus · Accepted Answer

Exchange efficiency is achieved when goods or services are distributed in a manner where no further trades can make anyone better off without making someone else worse off. In the scenario described, the trading of gifts among the boys and girls until everyone is completely happy exemplifies exchange efficiency, as no further trades could improve someone's satisfaction without reducing someone else's.

At a Birthday Party, All the Little Boys and Girls