Which of the Following Statements Concerning Efficiency Is Correct

question 102

Multiple Choice

Which of the following statements concerning efficiency is correct?

• A)If a toll road is heavily used so that traffic movement is slowed, the price per vehicle should be reduced since the road is generating more revenue.
• B)Economists advocate high prices for abundant resources and low prices for scarce resources.
• C)If a toll road is heavily used and traffic movement is difficult, the price per vehicle should be increased to shift some traffic to less-crowded roads.
• D)All of these options are desirable in promoting efficient use of scarce road space.

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Definitions:

LCL

Lower control limit, a statistical measure used in quality control processes to indicate when a process is becoming out of control on the low side.

Compressive Strength

The capacity of a material or structure to withstand loads tending to reduce size, often measured as the maximum stress it can endure without failure.

Injection Molding

The method of creating parts through the injection of molten substances into a mold.

Capability Index

A statistical tool used to determine the capability of a manufacturing process to meet its specified limits.