The most important way in which inefficiency occurs is
A)producing more military goods instead of civilian goods.
B)limiting economic growth by limiting capital spending.
C)unemployment of labor and other resources.
D)producing outside the production possibilities frontier.
E)All of the responses are correct.

Question

Quizplus · Accepted Answer

Unemployment of labor and other resources leads to inefficiency because it means that resources that could be producing goods and services are not being used to their full potential, resulting in lost output and economic growth. In contrast, choices A, B, and D represent specific situations in which inefficiency might occur, but they are not the most important way in which it occurs overall. Therefore, E is not the correct answer.

The Most Important Way in Which Inefficiency Occurs Is