1. What is economic efficiency?
- Economic efficiency occurs when scarce resources are used in a way that maximises consumer satisfaction.
- Economic efficiency occurs in a market when both allocative and productive efficiency are achieved.
- Economic efficiency occurs when a firm uses the right amount of inputs that are necessary for a given level of output.
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Other questions in this quiz
2. Which of these is NOT an example of X inefficiency?
- Technical economies of scale
- Employ surplus labour
- Adopt inefficient managerial practices
3. Where does productive efficiency occur?
4. Improving products helps a firm gain or at least retain ______ in the face of competition
- Market share
5. What is allocative efficiency?
- Allocative efficiency is when scarce resources are used in a way that maximises consumer satisfaction.
- Allocative efficiency is where firms are maximising output from given inputs.
- Allocative efficiency is where firms are achieving economic efficiency
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