The condition for efficiency in consumption states that a given set of goods in an economy should be allocated across a set of consumers until the marginal rate of substitution for each pair of goods is equal for each consumer.

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This statement is true. The condition for efficiency in consumption is known as Pareto efficiency, which states that resources should be allocated in such a way that no one can be made better off without making someone else worse off. The allocation of goods should be such that the marginal rate of substitution (MRS) – the amount of one good a consumer is willing to give up for an additional unit of another good – is equal for all consumers. This ensures that resources are allocated efficiently and that the economy is producing at its maximum possible level of output.

The Condition for Efficiency in Consumption States That a Given