Multiple Choice
Improvements in the methods of production allow for the creation of which of the following?
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2. Introductory Economic Models
Production Possibilities Frontier (PPF) - Introduction and Productive Efficiency
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
An assembly line is an example of __________.
A
allocative inefficiency
B
opportunity cost
C
scarcity
D
productive efficiency
Verified step by step guidance1
Understand the concept of an assembly line: it is a production process where a product is assembled in a sequence of steps, each performed efficiently to maximize output.
Recall the definition of productive efficiency: it occurs when goods or services are produced at the lowest possible cost, using resources in the most efficient way without waste.
Compare the given options: allocative inefficiency refers to resources not being used where they are most valued; opportunity cost is the cost of the next best alternative foregone; scarcity means limited resources relative to wants.
Recognize that an assembly line is designed to minimize production costs and maximize output, which aligns with the idea of productive efficiency.
Conclude that the assembly line exemplifies productive efficiency because it optimizes the production process to use resources effectively and reduce waste.
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