A society that is able to produce goods and services at the lowest cost possible is experiencing:
A) allocative efficiency.
B) production efficiency.
C) opportunity costs.
D) scarcity.

Question

Quizplus · Accepted Answer

Production efficiency refers to the ability of an economy to produce goods and services at the lowest possible cost using the given resources and technology. It means that the economy is producing maximum output with minimum input, which leads to an increase in the overall surplus of the economy. Therefore, the correct answer is B.

A Society That Is Able to Produce Goods and Services