How are people affected when economic efficiency increases?
A)Everyone will be better off and happier.
B)Overall gains exceed any change in costs, but some people may be worse off.
C)Dissatisfaction is a risk because the higher output will be spread across a larger number of people.
D)Efficiency squeezes people, so they end up worse off.

Question

Quizplus · Accepted Answer

When economic efficiency increases, overall gains exceed any change in costs, but some people may be worse off. This is because resources are often redistributed to achieve the efficiency, meaning that some individuals or groups may lose out while others benefit. However, overall, society will benefit as a whole from increased efficiency. Option A is incorrect because not everyone will necessarily be better off and happier. Option C is incorrect because while it is true that higher output may be spread across a larger number of people, this does not necessarily lead to dissatisfaction. Option D is incorrect because efficiency does not necessarily squeeze people and make them worse off.

How Are People Affected When Economic Efficiency Increases