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  • Miraflor Biñas - Ø ASSIGNMENT

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    Miraflor Biñas
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    Funds are allocated efficiently in a market economy by being provided to the economic unit willing to pay the highest expected return for a given risk level. This allows funds to go to their most productive use and generate the maximum return. Resources are allocated based on where demand is highest given the risk-return tradeoff.

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    Funds are allocated efficiently in a market economy by being provided to the economic unit willing to pay the highest expected return for a given risk level. This allows funds to go to their most productive use and generate the maximum return. Resources are allocated based on where demand is highest given the risk-return tradeoff.

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    © All Rights Reserved
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    14 views1 page

    Miraflor Biñas - Ø ASSIGNMENT

    Uploaded by

    Miraflor Biñas
    Funds are allocated efficiently in a market economy by being provided to the economic unit willing to pay the highest expected return for a given risk level. This allows funds to go to their most productive use and generate the maximum return. Resources are allocated based on where demand is highest given the risk-return tradeoff.

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    © All Rights Reserved
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    BINAS, Miraflor S.

    BSA 2
    ANSWERS

    Ø ASSIGNMENT

    How are funds allocated efficiently in a market economy?

     The economic unit that is willing to pay the highest expected return for a
    given risk level receives the funds.

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