Production Is Efficient If

question 108

Multiple Choice

Production is efficient if

• A)it generates a point beyond the production possibility curve.
• B)the maximum output possible given available resources and current technology.
• C)technological change occurs.
• D)the maximum amounts of the most important goods are produced.

---

Definitions:

Discretion

The freedom to decide what should be done in a particular situation, often referring to judgment in professional and personal contexts.

Aggregate Demand

The complete need for every product and service within an economy at a specific overall price level during a certain time frame.

Aggregate Supply

The total supply of goods and services that firms in an economy are willing to sell at a given overall price level in a given time period.

Real GDP

The production of goods and services valued at constant prices.