From an economic perspective, the outcome that yields the greatest economic surplus is the:
A)least cost outcome.
B)outcome with the highest benefit.
C)outcome of least benefit-cost gap.
D)most efficient outcome.

Question

Quizplus · Accepted Answer

The most efficient outcome yields the greatest economic surplus because it maximizes the benefits and minimizes the costs. This is because an efficient outcome allocates resources in a way that produces the most output possible given the available inputs. Hence, the most efficient outcome maximizes the total economic surplus, which is the sum of consumer surplus and producer surplus. This is because it ensures that all goods and services are being produced at the lowest possible cost and at a quantity that matches the consumers' willingness to pay.

From an Economic Perspective, the Outcome That Yields the Greatest