Efficiency can correctly be defined as
A) producing outside the production possibilities boundary.
B) maximizing opportunity cost.
C) producing the most output with given technology and resources.
D) providing for the immediate needs of the greatest proportion of the population.

Question

Quizplus · Accepted Answer

Efficiency refers to producing the maximum output possible with the given resources and technology. Option A is incorrect because producing outside the production possibilities boundary is not possible due to resource constraints. Option B is incorrect because maximizing opportunity cost means giving up the production of one good to produce more of another good, while efficiency implies producing the maximum possible of both goods. Option D is incorrect because providing for the immediate needs of the greatest proportion of the population does not necessarily refer to the maximum possible output with given resources and technology.

Efficiency Can Correctly Be Defined as