Final answer:
The efficient market is the type of competitive market that allocates funds to the most productive uses by achieving productive and allocative efficiency, leading to maximum satisfaction in society. Other market structures that do not meet these criteria are labeled as 'imperfect' due to inefficient allocation of resources.
Step-by-step explanation:
The competitive market that allocates funds to their most productive use is known as an efficient market. In an efficient market, resources are directed towards the most beneficial endeavors and are used in a way that maximizes satisfaction within society. This is in contrast to other market structures that may not achieve such a high degree of efficiency and are consequently labeled as 'imperfect'.
Efficient markets are characterized by two main concepts: productive efficiency and allocative efficiency. Productive efficiency occurs when goods are produced at the lowest possible cost, while allocative efficiency happens when resources are distributed in a way that maximizes the benefit to consumers, reflecting their preferences and willingness to pay.
Other market structures may lack these efficiencies for various reasons such as monopolies controlling prices or information asymmetry leading to suboptimal decisions. Thus, when compared to a perfectly competitive market, these imperfections cause resources to be misallocated, reducing the overall satisfaction of society and indicating a less-than-optimal allocation of funds.