The Terms Equality and Efficiency Are Similar in That They

question 157

Multiple Choice

The terms equality and efficiency are similar in that they both refer to benefits to society. However, they are different in that

• A)equality refers to uniform distribution of those benefits and efficiency refers to maximizing benefits from scarce resources.
• B)equality refers to maximizing benefits from scarce resources and efficiency refers to uniform distribution of those benefits.
• C)equality refers to everyone facing identical tradeoffs and efficiency refers to the opportunity cost of the benefits.
• D)equality refers to the opportunity cost of the benefits and efficiency refers to everyone facing identical tradeoffs.

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Definitions:

Budgeted Production

The quantity of goods or services that a company plans to produce during a specific period, as determined during budgeting.

Materials Inventory

The raw materials, work-in-process, and finished goods that a company holds at any given time for production.

Credit Sales

Sales made by a business where the payment is deferred to a later date, enabling customers to purchase goods or services on credit.

Cash Receipts

The collection of money, including coins, notes, electronic payments, etc., by a business from its customers or other transactions.