If Society Can Produce More of One Good but Must

question 161

Multiple Choice

If society can produce more of one good but must forgo some of another good to do so,it is definitely achieving

• A) both production and allocative efficiency.
• B) only production efficiency.
• C) only allocative efficiency.
• D) neither production nor allocative efficiency.
• E) None of the above answers is correct because when society must forgo another good to produce more of one good, then society might be production efficient or it might be allocatively efficient.

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Definitions:

Linear Programming

A mathematical methodology for determining the best outcome in a given mathematical model for some list of requirements represented as linear relationships.

Constrained Resources

Resources in limited supply that restrict the ability of an organization to produce goods or services or achieve desired outcomes.

Linear Programming

A mathematical modeling technique used for optimization of a linear objective function, subject to linear equality and inequality constraints.

Sensitivity Analysis

A technique used to determine how different values of an independent variable will impact a particular dependent variable under a given set of assumptions.