An Economy Is Efficient If It Is

question 100

Multiple Choice

An economy is efficient if it is:

• A)possible to produce more of all goods and services.
• B)possible to produce more of one good without producing less of another.
• C)not possible to produce more of one good without producing less of another good.
• D)producing a combination of goods.

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Definitions:

Revenue Expenditure

A type of expenditure that does not result in the acquisition of long-term assets and is rather incurred in the day-to-day operations of a business.

New Equipment

Recently acquired or installed machinery or tools intended for operational or productive use in an organization.

Ordinary Maintenance

Routine maintenance and repairs necessary to keep an asset in working condition, not significantly prolonging its life or increasing its value.

Replacing Engine

The process of removing a damaged or nonfunctional engine from a vehicle or machine and installing a new or refurbished one.