Inefficient Allocation of Resources Occurs When

question 207

Multiple Choice

Inefficient allocation of resources occurs when

• A)no one can be made better off without having someone else give up something.
• B)it is possible to make some people better off without making others worse off.
• C)society is operating at a point high on the production possibilities frontier.
• D)society is operating at a point low on the production possibilities frontier.

---

Definitions:

Market

A venue or system where buyers and sellers interact to trade goods, services, or financial instruments.

Cost Driver

A factor that causes the cost of an activity or process to change, used in activity-based costing to allocate costs more accurately.

Support Department

Units within an organization that provide essential services or support to the primary operations departments but do not directly participate in production activities.

Purchase Requisitions

Documents used within organizations to officially request the purchase of goods or services, usually for approval before a purchase order is issued.