When the Net Benefits of All Economic Activities Are Maximized

question 196

Multiple Choice

When the net benefits of all economic activities are maximized, economists say the allocation of resources is _______ .

• A) inefficient
• B) correct
• C) efficient
• D) well done

---

Definitions:

Rising Deficits

An economic condition where a government's expenditures exceed its revenues over a specified period, leading to an increase in debt.

Inflation

The speed at which prices for goods and services generally go up, diminishing the buying power.

Industrial Base

The sector of the economy made up of manufacturing, engineering, and infrastructure companies, which is fundamental for a country's economic development.

John D. Rockefeller

John D. Rockefeller was an American industrialist and philanthropist, best known for founding and leading the Standard Oil Company.