Society wants to use its scarce resources efficiently.To achieve this economic goal it must:
A) have full employment and full production.
B) have a fixed resource base and fixed technology.
C) expand the use of capital goods and reduce the use of labor.
D) increase the rental,interest,wage,and profit payments to the factors of production.

Question

Quizplus · Accepted Answer

Full employment and full production mean that all available resources are being utilized efficiently, hence achieving the goal of using scarce resources efficiently. B is incorrect because a fixed resource base and technology would limit the ability to adapt and innovate to achieve efficiency. C is incorrect because increasing the use of capital goods at the expense of labor may not always be efficient, as it depends on the specific circumstances. D is incorrect because increasing payments to factors of production does not necessarily guarantee efficient resource allocation.

Society Wants to Use Its Scarce Resources Efficiently