Which of the following is a characteristic of an efficient market?

An efficient market is characterized by the maximization of total surplus. Total surplus refers to the sum of consumer surplus and producer surplus, representing the overall economic benefits that participants in a market gain from trade. In an efficient market, resources are allocated in a way that maximizes this surplus, meaning that goods and services are produced at their lowest opportunity cost and are distributed where they are valued the most.

This concept is rooted in the idea that in an efficient market, all relevant information is available to participants, prices reflect the true value of goods, and there are no barriers preventing the free entry and exit of firms. Consequently, when total surplus is maximized, it indicates that the market is functioning effectively, promoting social welfare and an optimal allocation of resources.

The other options do not encapsulate the essence of an efficient market. For instance, a uniform distribution of wealth does not necessarily relate to market efficiency, as efficiency can exist alongside inequality. High barriers to entry typically indicate market inefficiencies by preventing competition and innovation. Lastly, government price controls can distort market equilibrium, leading to shortages or surpluses, which move the market away from efficiency.