efficiency

Question 1

maximum output of a good from the resources used in production

Answer 1

efficiency

Question 2

Every point ON the production possibilities curve is a _____

Answer 2

point of efficiency

Question 3

When resources are divided among firms and industries to obtain production of the products most wanted by consumers

Answer 3

allocative efficiency

Question 4

when marginal benefit = marginal cost

Answer 4

allocative efficiency occurs

Question 5

Production of goods in the least costly way

Answer 5

Productive efficiency

Question 6

We achieve _____ if we cannot produce more of one good without producing less of some other good

Answer 6

production efficiency

Question 7

The ____ of a good or service is the opportunity cost of producing one more unit of it

Answer 7

marginal cost

Question 8

____ are a description of a person’s likes and dislikes

Answer 8

preferences

Question 9

The ____ of a good or service is the benefit received from consuming one or more unit of it

Answer 9

marginal benefit

Question 10

____ shows the relationship between the marginal benefit of a good and the quantity of that good consumed

Answer 10

marginal benefit curve