The Most Efficient Combination of Resources in Producing Any Output

question 53

Multiple Choice

The most efficient combination of resources in producing any output is that combination which:

• A)comes closest to using the same quantities of land, labour, capital, and entrepreneurial ability.
• B)can be obtained for the smallest money outlay.
• C)uses the smallest total quantity of all resources.
• D)conserves most on the use of labour.

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Definitions:

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe existing states, outcomes, or future events.

Individual Mandate

A requirement for individuals to have health insurance or pay a penalty, originally a key provision of the Affordable Care Act.

Affordable Care Act

The Affordable Care Act, also known as Obamacare, is a law enacted to increase health insurance quality and affordability, and lower the uninsured rate by expanding public and private insurance coverage.

Adverse Selection

A situation where sellers have information that buyers do not have, or vice versa, leading to an unbalanced and inefficient market.