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.

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Definitions:

Long-term Investments

Investments in stocks, bonds, real estate, or other instruments that are not intended to be sold or liquidated within the next year.

Correcting Entry

An entry made in the accounting records to correct an error found in previously recorded transactions.

Accounts Payable

Liabilities owed by a business to its suppliers or vendors for goods or services received that have not yet been paid for.

Service Revenue

Income earned by a company for the provision of services, distinguished from revenue generated from the sale of goods.