Which of the Following Is True

question 45

Multiple Choice

Which of the following is true?

• A)Efficiency refers to the size of the economic pie; equality refers to how the pie is divided.
• B)Government policies usually improve upon both equality and efficiency.
• C)As long as the economic pie continually gets larger, no one will have to go hungry.
• D)Efficiency and equality can both be achieved if the economic pie is cut into equal pieces.

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Definitions:

Long Run

In economics, a period in which all factors of production and costs are variable, allowing all inputs to be adjusted.

Average Variable Cost

The total variable costs of production divided by the quantity of output produced, representing the cost per unit of output.

Total Revenue

The complete sum of funds a company acquires from selling goods or offering services over a specified time period.

Operating Profit

The profit earned from a firm's core business operations, excluding deductions of interest and taxes.