Question

While utilizing the assigned resources effectively and efficiently, what should be the primary focus?

1) Maximizing productivity
2) Minimizing costs
3) Achieving quality outcomes
4) All of the above

Answer 1

The primary focus should be economic efficiency, which includes maximizing productivity, minimizing costs, and achieving quality outcomes, while making the most benefit from scarce resources.

Step-by-step explanation:

When utilizing assigned resources effectively and efficiently, the primary focus should be on economic efficiency, which encompasses maximizing productivity, minimizing costs, and achieving quality outcomes. Economic efficiency is about getting the most benefit from scarce resources, ensuring that available resources are used optimally. Within the context of production possibilities frontier and budget constraints, productivity efficiency signifies that producing more of one good incurs the cost of producing less of another. Additionally, the concept of allocative efficiency arises when the choices made are socially or personally preferred and represent the most efficient distribution of resources.