Inefficiency is best illustrated by which of the following?
A)foregoing civilian goods in order to produce more military goods
B)limiting economic growth by reducing capital spending
C)high levels of unemployment of labor and other resources that could be productively employed
D)producing outside the production possibilities frontier

Question

Inefficiency is best illustrated by which of the following?
A)​foregoing civilian goods in order to produce more military goods
B)​limiting economic growth by reducing capital spending
C)​high levels of unemployment of labor and other resources that could be productively employed
D)​producing outside the production possibilities frontier

Quizplus · Accepted Answer

High levels of unemployment indicate that resources are not being utilized efficiently, as they could potentially be deployed to produce more goods and services. This results in a loss of potential output and economic growth.

Inefficiency Is Best Illustrated by Which of the Following