Efficiency in economic terminology means________________?
Correct answer: B. obtaining the highest output in the least amount of time
- A. using existing technology
- B. obtaining the highest output in the least amount of time
- C. ignoring the time factor
- D. making do with as few workers as possible
Explanation
Economic efficiency means producing the greatest possible output from given resources, often expressed as obtaining maximum output with minimum time or input. Merely using existing technology or reducing the number of workers does not necessarily achieve efficiency.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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