Which of the Following Is True

question 25

Multiple Choice

Which of the following is true?

• A) Economic efficiency occurs if the maximum feasible amount of output is achieved from a given quantity of inputs.
• B) Economic efficiency depends only on what is feasible.
• C) If production is technologically efficient then it must be economically efficient.
• D) None of the above statements are correct.

---

Definitions:

Investment Spending

Expenditure on physical assets like machinery, buildings, or equipment, intended to create future benefits.

Hyperinflation

An extremely high and typically accelerating rate of inflation, often exceeding 50% per month, leading to a rapid erosion of the real value of local currency.

Discount Rate

The interest rate charged by central banks to financial institutions for short-term loans, influencing monetary policy.

Reserve Requirements

Central banks' mandates on the minimum reserve levels that financial institutions need to uphold for their deposits.