In a market economy, what is generated by voluntary exchange between buyers and sellers?

Question

Quizplus · Accepted Answer

Voluntary exchange between buyers and sellers leads to allocative efficiency, meaning resources are allocated in a way that maximizes satisfaction and minimizes waste. Scarcity is a condition that exists in all economic systems, and productive efficiency refers to producing goods and services at the lowest possible cost. Equity refers to fairness and can be achieved through policies such as income redistribution, which is not necessarily generated by voluntary exchange between buyers and sellers.

In a Market Economy, What Is Generated by Voluntary Exchange