When the net benefits of all economic activities are maximized, economists say the allocation of resources is _______ .
A) inefficient
B) correct
C) efficient
D) well done

Question

Quizplus · Accepted Answer

When the net benefits of all economic activities are maximized, it means that resources are being efficiently allocated, meaning that the benefits of the resources are being used to their maximum potential. In other words, the benefits of the resources are greater than the costs incurred to achieve them.

When the Net Benefits of All Economic Activities Are Maximized