During World War Two, prisoners of war received Red Cross parcels containing jam, tea, chocolate, raisins, and other items. Each prisoner in a camp received an identical parcel. After distribution, considerable trading took place. In terms of economic efficiency, the original distribution created a situation that was:

efficient because it was completely equal.
inefficient because preferences differed.
efficient because anytime anyone gains in a trade, someone else must lose.
inefficient because the prisoners did not produce anything.

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