Which of the following statements best describes productive efficiency?
a. Productive efficiency occurs when as additional increments of resources are added to produce a good or service, the marginal benefit from those additional increments decline.
b. Productive efficiency occurs when it is impossible to produce more of one good (or service) without decreasing the quantity produced of another good (or service).
c. Productive efficiency occurs when a country can produce a good at a lower cost in terms of other goods or when a country has a lower opportunity cost of production.
d. Productive efficiency occurs when the mix of goods being produced represents the mix that society most desires.
b. Productive efficiency occurs when it is impossible to produce more of one good (or service) without decreasing the quantity produced of another good (or service).
You might also like to view...
What is the shape of average cost curve? Provide the reason for that particular shape.
What will be an ideal response?
Recall the Application about French restaurants and the Value Added Tax (VAT) to answer the following question(s).Recall the Application. According to the Application, how much VAT did restaurants pay prior to 2003?
A. 20% VAT for restaurants with sit-down meals and 5% VAT for fastfood restaurants. B. 25% VAT for all restaurants. C. 20% VAT for fastfood restaurants and 5% VAT for restaurants with sit-down meals. D. 5% for all restaurants.
One of the characteristics of a carbon tax is that it would
A. place the heaviest burden on high-income families. B. tend to encourage more usage of cheaper fuels like coal and less usage of expensive energy sources like nuclear energy. C. encourage energy consumers to invest in energy efficiency. D. have little effect on the emission of greenhouse gases.
Refer to the information provided in Figure 20.1 below to answer the question(s) that follow.
Figure 20.1Refer to Figure 20.1. The opportunity cost of producing a bushel of soybeans in Canada is
A. half a bushel of alfalfa. B. 1 bushel of alfalfa. C. 2 bushels of alfalfa. D. zero.