An Economy Is Being Efficient If It Is Impossible to Produce

question 118

True/False

An economy is being efficient if it is impossible to produce more of one good without producing less of another.

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Definitions:

Elasticity

A measure in economics of how the quantity demanded or supplied of a good changes in response to changes in price or other factors.

Considered Elastic

A description for goods or services whose demand or supply is significantly responsive to changes in price.

Unit Elastic

Describes a demand or supply scenario where a percentage change in price leads to an equal percentage change in quantity demanded or supplied.

Quantity Demanded

The aggregate quantity of a product or service that customers are ready and capable of buying at a certain price point.