Which of the following would indicate that markets are operating efficiently?
A) Consumer sovereignty is being achieved
B) Firms are making a high level of profits
C) There is a constant rise in the money value of goods and services
D) Incomes are distributed equally across all people

Question

Quizplus · Accepted Answer

Consumer sovereignty, where consumers' preferences and choices direct the types of goods and services produced, is a key indicator of market efficiency. This suggests that resources are being allocated in a way that reflects the wants and needs of consumers.

Which of the Following Would Indicate That Markets Are Operating