When Is an Economic Outcome Said to Be Efficient

question 125

Multiple Choice

When is an economic outcome said to be efficient?

• A) if the economy is using all of the resources it has available
• B) if the economy is conserving its resources for the future
• C) if the economy is getting all it can from the scarce resources it has available
• D) if the economy is able to produce more than its current production without additional resources

---

Definitions:

Valve Division

A specialized department within a company that focuses on the production and sales of valve-related products.

Pump Division

A specialized section within a company focusing on producing and managing pump-related products and services.

Transfer Price

The cost at which various units within the same corporation sell goods and services to each other.

Idle Capacity

The unused portion of a company's production capacity, where resources such as space, labor, or equipment are underutilized.