Production efficiency reflects
A) how often economists make assumptions about important variables.
B) how well resources are allocated.
C) the fact that all labor is equally productive.
D) the assumption made by economists that holds important variables constant.

Question

Quizplus · Accepted Answer

Production efficiency reflects how well resources are allocated, meaning that resources are being used in the most optimal way possible. It does not have anything to do with assumptions made by economists or the productivity level of all labor being equal.

Production Efficiency Reflects