Question

If an economy is being "productively efficient," then that means the economy is

A. producing the products most wanted by society.
B. fully employing all economic resources.
C. maximizing the returns to factors of production.
D. using the least costly production techniques.

Answer 1

Productive efficiency refers to the ability of an economy to produce the maximum output possible given the available resources and technology.

Step-by-step explanation:

Productive efficiency refers to the ability of an economy to produce the maximum output possible given the available resources and technology. In other words, it means using the least costly production techniques. When an economy is productively efficient, it is producing goods and services at the lowest possible cost and using all available resources efficiently. For example, if a factory is producing cars using the most efficient production techniques and fully utilizing its workforce and equipment, it can be considered productively efficient.