Voluntary exchange between buyers and sellers generates ________ in a market economy.
A)scarcity
B)allocative efficiency
C)productive efficiency
D)equity

Question

Quizplus · Accepted Answer

Voluntary exchange between buyers and sellers in a market economy leads to allocative efficiency, meaning resources are allocated to produce goods and services that consumers value the most. This allows for the greatest level of satisfaction for both buyers and sellers, and is a hallmark of a well-functioning market economy.

Voluntary Exchange Between Buyers and Sellers Generates ________ in a Market