There Is Only One Efficient Allocation of Resources in an Economy

question 13

True/False

There is only one efficient allocation of resources in an economy at one point in time.

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Definitions:

Economic Efficiency

A state where every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Incentives

Incentives are rewards or penalties that motivate individuals or entities to act in a certain way, often used to influence economic behavior and decision-making.

Ability-to-pay Principle

A tax design principle that suggests taxes should be levied according to an individual's or entity's ability to bear them.

Regressive Tax

A tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases.