An Economy Is Efficient If It Is

question 100

Multiple Choice

An economy is efficient if it is:

• A)possible to produce more of all goods and services.
• B)possible to produce more of one good without producing less of another.
• C)not possible to produce more of one good without producing less of another good.
• D)producing a combination of goods.

---

Definitions:

Cash Amount

The total value of cash on hand or in bank accounts, easily accessible for immediate use by the business.

Cost of Merchandise Sold

The direct costs attributable to the goods sold by a company, including purchase price, freight, storage, and packaging.

Inventories

Assets held for sale in the ordinary course of business, or in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process.

Cash Payment

Money that is paid out by a business, often documented by a cash disbursement journal.