An 'Increase in Efficiency' Suggests That an Economy

question 21

Multiple Choice

An 'increase in efficiency' suggests that an economy:

• A) is able to get more goods from a given amount of resources
• B) is able to get more services from a given amount of resources
• C) is able to get less goods and services from a given amount of resources
• D) is able to get more goods and services from a given amount of resources

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Definitions:

Marginal Revenue

The additional income from selling one more unit of a good; essentially the change in total revenue from an additional unit sold.

Perfect Competition

An idealized market structure in which there are many buyers and sellers, no barriers to entering or exiting the market, and products are identical.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, measuring the true profitability of a firm.

Profit-Maximizing

A method or strategy businesses use to achieve the highest possible profit from their operations.