Competitive markets with no external costs or benefits and no government price ceilings, floors, taxes or subsidies ________ efficient. According to the "It's not fair if the rules aren't fair" idea of fairness, competitive markets ________ fair.
A) are; are
B) are; are not
C) are not; are
D) are not; are not

Question

Quizplus · Accepted Answer

Competitive markets without externalities or government interventions are considered efficient because they allocate resources in a way that maximizes total surplus. According to the "It's not fair if the rules aren't fair" idea, competitive markets are also considered fair because they operate under a set of rules that apply equally to all participants.

Competitive Markets with No External Costs or Benefits and No