An Increase in Efficiency Means That an Economy Has

question 31

Multiple Choice

An increase in efficiency means that an economy has:

• A)reduced its opportunity costs.
• B)increased the equity of its distribution of goods and services.
• C)made more people better off without making others worse off.
• D)increased the incentives for its citizens to follow their own self-interest.

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Definitions:

States of Nature

Various possible scenarios or outcomes in a decision-making problem that are not controlled by the decision maker.

Gross Profits

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Payoff Table

A tabular representation of the possible payoffs or outcomes resulting from different decisions or strategies under various states of nature.

States of Nature

Different potential scenarios or outcomes that can occur in a decision-making problem, independent of the decision maker's choices.