Question

which of the following best describes components of economic efficiency? selected answer will be automatically saved. for keyboard navigation, press up/down arrow keys to select an answer. a full employment and technical efficiency are absolute keys to achieving economic efficiency. allocative efficiency is less important because we are already on the production possibilities frontier if we have the first two. b technical efficiency is the most important of all of the components because without it we will be below the production possibilities frontier. c full employment of our resources is the most important of all of the components because without it we will be below the production possibilities frontier. d achievement of full employment, technical efficiency, and allocative efficiency are all basically equal in importance to the achievement of economic efficiency.

Answer 1

Economic efficiency is achieved when full employment, technical efficiency, and allocative efficiency are all addressed equally. Productive efficiency occurs along the production possibility frontier, while allocative efficiency ensures the production mix aligns with societal preferences.

Step-by-step explanation:

Economic efficiency includes several components that contribute to getting the most benefit from scarce resources. It comprises productive efficiency, meaning it is impossible to produce more of one good without decreasing the quantity produced of another, which occurs when choices are made along a production possibility frontier (PPF). This ensures there is no waste in production. On the other hand, allocative efficiency ensures that the mix of goods produced represents the allocation that society most desires and is achieved when the point chosen on the PPF reflects society's preferred distribution of goods.

Considering this, the answer that best describes components of economic efficiency is that the achievement of full employment, technical efficiency, and allocative efficiency are all basically equal in importance to the achievement of economic efficiency. This is because full employment ensures that all resources are being used, technical efficiency warrants that resources are used without waste, and allocative efficiency ensures that the resources are used to produce a mix of goods that reflects society's preferences.