Mathilda, who works for an insurance company, has the capacity to sell fifteen insurance policies a day. However, she sells only ten insurance policies a day. This is a typical example of _____.
A) information asymmetry
B) the glass ceiling effect
C) inefficiency
D) an ecological fallacy
E) the functional chimneys problem

Question

Quizplus · Accepted Answer

This is an example of inefficiency because Mathilda has the capacity to sell fifteen insurance policies but is selling only ten, indicating that she is not using her full potential.

Mathilda, Who Works for an Insurance Company, Has the Capacity