The Composite Unit in DEA

question 45

Multiple Choice

The composite unit in DEA

• A) has as output a weighted average of the outputs of the individual units.
• B) has as input a weighted average of the inputs of the individual units.
• C) has outputs greater than or equal to the outputs of any individual unit.
• D) All of the alternatives are correct.

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Definitions:

Economic System

The structured and organized way by which a society decides on the production, distribution, and consumption of goods and services.

Invisible Hand

The invisible hand is a metaphor introduced by Adam Smith to describe the unintended social benefits resulting from individual actions driven by self-interest.

Perfect Competition

A market structure characterized by a large number of small firms, homogeneous products, and the free entry and exit of firms, where no single firm can influence the market price.

Mixed Economy

An economy in which production and distribution is done partly by the private sector and partly by the government.