Efficient markets:
A) maximize total surplus.
B) can occur without a central planner.
C) occur when a perfectly competitive, well-functioning market is in equilibrium.
D) All of these are true.

Question

Quizplus · Accepted Answer

Efficient markets are characterized by the maximization of total surplus, and do not require a central planner. The most efficient markets occur when a perfectly competitive, well-functioning market is in equilibrium. Therefore, all of the given options are true.

Efficient Markets