Economic Efficiency Requires That

question 313

Multiple Choice

Economic efficiency requires that

• A) individuals take all actions within their power.
• B) only long-lasting, high-quality products be produced.
• C) income be distributed equally among individuals.
• D) all economic activity generating more benefits than costs to individuals in the economy be undertaken.

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Definitions:

Taxes on Labor

Financial charges imposed by governments on workers' income, salaries, and wages.

Elderly

Individuals who are significantly beyond the usual age for retirement, often implying an age at which they receive certain societal or economic benefits like pensions.

Deadweight Loss

An economic inefficiency arising when there's a failure to attain or an impossibility of attaining equilibrium for a particular good or service.

Taxes on Labor

Refers to taxes imposed on wages or salaries earned, impacting the net income of employees.