Allocative Efficiency Refers to

question 7

Multiple Choice

Allocative efficiency refers to

• A) the use of the least-cost method of production.
• B) the production of the product mix most wanted by society.
• C) the full employment of all available resources.
• D) production at some point inside of the production possibilities curve.

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Definitions:

Sales and Sales Taxes

Revenue from goods or services sold, and the tax collected on these sales, which is remitted to the government.

Gross Earnings

The total income earned by a business before deductions such as taxes, expenses, and costs.

Net Pay

The take-home pay an employee receives after deductions such as taxes and retirement contributions.

Federal Income Tax

The annual income of individuals, corporations, trusts, and other legal entities is subject to a tax imposed by the IRS.