Which of the Following Statements Best Expresses Why Economic Efficiency

question 61

Multiple Choice

Which of the following statements best expresses why economic efficiency should be society's first goal?

• A)Efficiency gives the poor an incentive to improve their economic status.
• B)Since the consensus on what is a fair distribution of goods is impossible, efficiency is the next best goal.
• C)People are not really concerned about the problems of the poor, so government must address them instead.
• D)Efficiency maximizes total economic surplus and thereby allows other goals to be more easily achieved.

Distinguish between different types of costs and their relevance to economic decision-making.

Apply the principle of marginal analysis to determine optimal levels of activity.

Understand the role of opportunity cost in comparing the value of alternate choices.

Recognize the importance of opportunity costs in resource allocation in both personal and organizational contexts.

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