An Increase in Efficiency Means That an Economy Has

question 31

Multiple Choice

An increase in efficiency means that an economy has:

• A)reduced its opportunity costs.
• B)increased the equity of its distribution of goods and services.
• C)made more people better off without making others worse off.
• D)increased the incentives for its citizens to follow their own self-interest.

---

Definitions:

Natural Resources

Raw materials and components found in nature that can be used to produce goods and provide services, such as water, forests, and minerals.

Scarcer Over Time

indicates that a resource or good is becoming less available or more difficult to obtain as time progresses.

Saving Rate

The proportion of income that is not spent, but instead saved by individuals, households or the nation as a whole.

Productivity

measures the efficiency of production in terms of the amount of output generated per unit of input, such as labor or capital.