Efficiency occurs when
A) the economy is producing what people want at least possible cost.
B) the economy has a fair and just distribution of income.
C) all markets are in equilibrium.
D) unemployment is low and prices are stable.

Question

Quizplus · Accepted Answer

Efficiency in an economic context refers to the optimal production and distribution of resources, meaning the economy is producing what people want at the least possible cost. This involves minimizing waste and allocating resources where they are most valued by consumers, without necessarily addressing income distribution, market equilibrium in all sectors, or specific macroeconomic conditions like unemployment and price stability.

Efficiency Occurs When