Efficiency (U2: T1)

Which of the following statements is true about the economic problem?

• The economic problem can be avoided
• The economic problem cannot be avoided
• The economic problem is irrelevant
• The economic problem is only a theoretical concept

What is the primary objective of economic systems

• To maximise profits
• To minimize costs
• To achieve optimal satsifaction of wants
• To eliminate competition

How should productive resources be allocated

• To their minimum use
• To their optimum use
• To their average use
• To their maximum use

What will an efficient market achieve?

• Maximum profits
• Minimum costs
• Optimum results
• Elimination of competition

Which of the following terms refers to the concept where additional units of input result in progressively smaller increases in output?

• Productive Efficiency
• Law of Diminishing Marginal Productivity
• Technical Efficiency
• Alloctive Efficiency

What is the term for the efficiency achieved when resources are allocated in a way that maximizes the net benefit to society?

• Specialisation
• Dynamic Efficiency
• Allocative Efficiency
• Technical Efficiency

Which type of efficiency is concerned with producing goods and services at the lowest possible cost?

• Productive Efficiency
• Economies of Scale
• Socially Optimal Level of Output
• Specialisation

What is the term for the efficiency that focuses on the optimal production and distribution of goods and services over time?

• Technical Efficiency
• Dynamic Efficiency
• Allocative Efficiency
• Economies of Scale

Which concept refers to the benefits gained by producing on a larger scale, where the cost per unit of output decreases as the scale of production increases?

• Specialisation
• Economies of Scale
• Productive Efficiency
• Socially Optimal Level of Output

What does the Law of Diminishing Marginal Productivity state?

• Increasing the amount of any one resource will always result in an increase in production.
• Increasing the amount of any one resource will not necessarily result in an increase in production.
• Decreasing the amount of any one resource will always result in an increase in production.
• Decreasing the amount of any one resource will not necessarily result in an increase in production.