Question

Please see an attachment for details

Image transcription text

Question 7 (1 point) To an economist an efficient policy outcome is one that: O a) Leads to greatest possible benefits 0 b} Leads to minimum possible costs 0 c} Produces the greatest amount of equity 0 d) Leads to greatest possible net benefits

... Show more

Answer & Explanation
Verified Solved by verified expert

d) Leads to greatest possible net benefits

Step-by-step explanation

When all items and factors of production in an economy are dispersed or allocated to their most beneficial uses, waste is eliminated or reduced.

Economic efficiency is achieved when every scarce resource in an economy is utilized and divided among producers and consumers in a way that maximizes economic output and consumer benefit.

Economic efficiency can be defined as efficient production decisions within businesses and industries, efficient consumption decisions made by individual customers, and efficient distribution of consumer and producer commodities among individual consumers and enterprises.

When every economic benefit is ideally allocated across production and consumption, no modification to the arrangement can make anyone better off without making someone else worse off.

 

Reference

Murillo‐Zamorano, L. R. (2018). Economic efficiency and frontier techniques. Journal of Economic surveys, 18(1), 33-77.