Obtaining the maximum possible output with a given set of resources or obtaining output for the lowest possible cost is known as:
A) allocative efficiency.
B) allocative effectiveness.
C) productive efficiency.
D) productive effectiveness.

Question

Quizplus · Accepted Answer

Productive efficiency refers to a situation where the maximum possible output is produced with a given set of resources, or equivalently, when output is produced at the lowest possible cost. This concept is central to the study of economics and operational management, focusing on optimizing resource use to maximize productivity and minimize waste or expenses.

Obtaining the Maximum Possible Output with a Given Set of Resources