Which of the Following Is NOT an Example of Efficient

question 29

Multiple Choice

Which of the following is NOT an example of efficient performance?

• A) Direct labor hours used per unit were less than expected.
• B) Direct material used per unit was less than expected.
• C) More outputs were achieved with less inputs than predicted.
• D) More outputs were produced than expected.

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Definitions:

Law of Increasing Costs

An economic principle stating that as the production of one good increases, the opportunity cost of producing an additional unit of this good also increases, assuming all resources are fully utilized.

Capacity Utilization Rate

A measure of how efficiently a firm or economy is using its productive capacity, often expressed as a percentage of total potential output.

Full Capacity

The maximum level of output that a company can produce and supply under normal conditions.

Production Possibilities Curve

A graphical representation that shows the maximum quantity of goods and services that a society can produce given its resource and technology constraints.