Technological efficiency, defined in terms of completely objective relationships,
A) has no useful meaning.
B) influences the decisions of engineers but not of business executives.
C) influences the decisions of engineers but not of economists.
D) is more important in the long run than in the short run, where profitability tends to dominate decisions.
Question 2
Which statement best describes the relationship between scarcity and shortage?
A) Neither scarcity nor shortages will exist if money prices are allowed to determine who gets what.
B) Scarcity and shortages are unavoidable as long as money prices are allowed to determine who gets what.
C) Scarcity is an inescapable fact of life but shortages are avoidable.
D) Shortages are an inescapable fact of life but scarcity can be eliminated.
Production efficiency.
objective v subjective
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