A society that is able to produce goods and services at the lowest possible cost is experiencing
A) allocative efficiency.
B) production efficiency.
C) opportunity costs.
D) scarcity.

Question

Quizplus · Accepted Answer

Production efficiency refers to a situation where a society is employing its resources in the most efficient way to produce goods and services at the lowest possible cost, without wasting any resources. This means that it is producing as much as it can with the available resources. Therefore, choice (B) is the correct answer. Choice (A) refers to the situation where resources are allocated in the most socially desirable way, rather than the most efficient way. Choice (C) refers to the value of the next best alternative that must be given up to obtain something else, and choice (D) refers to the fundamental economic problem of having unlimited wants and needs but limited resources.

A Society That Is Able to Produce Goods and Services