When goods are produced at the lowest possible cost, the economy is experiencing
A) allocative efficiency.
B) production efficiency.
C) equity.
D) deflation.

Question

Quizplus · Accepted Answer

Production efficiency refers to producing goods at the lowest possible cost, which is a key factor in maximizing output and productivity in an economy. Allocative efficiency refers to the allocation of resources to meet the demands of consumers, while equity refers to fairness and equal distribution of resources. Deflation refers to a decrease in overall prices, which can have negative impacts on the economy such as reduced consumer spending and increased borrowing costs.

When Goods Are Produced at the Lowest Possible Cost, the Economy