Asked by Harun Abdullahi on May 05, 2024
Verified
Efficiency involves:
A) producing output using the least amount of labor.
B) producing output using the least amount of capital.
C) producing as far inside the production possibilities frontier as possible.
D) producing only one out of many possible commodities.
E) getting the maximum possible output from available resources.
Maximum Possible Output
The highest quantity of goods and services an economy can produce when it is utilizing all of its resources efficiently.
Efficient Use
The allocation of resources in a manner that maximizes the output of goods and services with minimal waste.
- Comprehend the effects of optimal resource utilization on the Production Possibility Frontier.
Verified Answer
ZK
Zybrea KnightMay 07, 2024
Final Answer :
E
Explanation :
Efficiency means getting the maximum possible output from available resources. Options A and B are too restrictive as they only focus on labor or capital, and option D is not efficient as it only produces one commodity. Option C is not necessarily efficient as producing too far inside the production possibilities frontier means wasting resources that could be used to produce more goods and services.
Learning Objectives
- Comprehend the effects of optimal resource utilization on the Production Possibility Frontier.
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