Consider Two Processes

question 40

Multiple Choice

Consider two processes. If both versions create the same benefit, but one costs more than the other, the higher-cost version is less ________ than the lower-cost version.

• A) effective
• B) work
• C) timely
• D) efficient

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Definitions:

Economic Output

The total value of all goods and services produced within an economy over a specific time period.

Potentially Efficient

A condition where resources could be allocated in a way that maximizes the net benefits to society, although it may not necessarily be achieved.

Empirical Economics

The study of economics based on the collection and analysis of data, emphasizing the role of observation and experimentation in understanding economic principles.

Economic Theories

These are frameworks or models that explain how economic processes work and predict how economies will respond to certain actions.