Efficiency Involves

question 134

Multiple Choice

Efficiency involves:

• A)producing output using the least amount of labor.
• B)producing output using the least amount of capital.
• C)producing as far inside the production possibilities frontier as possible.
• D)producing only one out of many possible commodities.
• E)getting the maximum possible output from available resources.

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Definitions:

Substitution Effect

The change in demand for a good that results from a change in its price, making consumers more likely to purchase more of a less expensive alternative or less of a more expensive one.

Demand Curves

Graphs showing the relationship between the price of a good and the quantity demanded by consumers, typically downward-sloping.

Marginal Utility Data

Information regarding the additional satisfaction or use received by consuming one more unit of a good or service.

Prices

The monetary value expected, necessary, or allocated for the purchase of something.