An efficient allocation of resources would be characterised by:
A) a good being produced by the sellers with lowest cost
B) there is a shortage at the current market price
C) a good is not being bought by the buyers the highest value
D) all of the above are correct

Question

Quizplus · Accepted Answer

An efficient allocation of resources would be characterised by goods being produced by the sellers with the lowest cost as this minimizes wastage and maximizes productivity. A shortage at the current market price (option B) would indicate that demand is greater than supply, which could result in pricing inefficiencies. A good not being bought by the buyers at the highest value (option C) could indicate market imperfections or a lack of information, which would result in an inefficient allocation of resources. Therefore, only option A is a characteristic of an efficient allocation of resources.

An Efficient Allocation of Resources Would Be Characterised By