Efficiency Is

question 59

Multiple Choice

Efficiency is

• A) the organization's ability to complete or reach goals.
• B) a specific measure, typically used in the production-operations-manufacturing area, of how many inputs it took to produce outputs.
• C) the ability of the organization to minimize the use of resources in achieving organizational goals.
• D) the search for the best practices from other leading organizations.
• E) None of the answer choices is correct.

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Definitions:

Neutral Taxes

Taxes that do not affect the allocation of resources between different goods or activities in the economy.

Excess Burdens

The economic inefficiencies or losses that result from imposing taxes or government policies.

Principle of Second Best

An economic theory that suggests when a condition for a perfect market cannot be met, the next-best solution may involve violating another condition to improve efficiency.

Distortionary Tax

A tax that causes people to alter their behavior and make different economic decisions than they would in a free market, potentially leading to inefficiency.