The ________ Component Is That Part of the General Environment

question 48

Multiple Choice

The ________ component is that part of the general environment that indicates how resources are being distributed and used within the environment.

• A)social
• B)economic
• C)political
• D)international
• E)legal

---

Definitions:

Productive Efficiency

A situation where an economy or entity is operating in such a way that it cannot produce more of one good without decreasing the production of another good.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, representing surplus value created by a firm.

Excess Capacity

A situation where a firm or industry has more production resources available than is necessary to produce the current level of output, often indicating inefficiency.

Minimum ATC

Minimum ATC, or minimum average total cost, is the lowest point on the average total cost curve, representing the most efficient scale of production for a firm.