1) What does economic efficiency mean? a) Using the least amount of money to produce goods. b) Optimal use of resources to produce goods and services with minimal waste. c) Producing goods quickly regardless of quality. d) Maximizing profits by any means. 2) Which of the following best exemplifies economic efficiency in a business? a) A factory that has many employees working different shifts. b) A factory that uses all its resources to produce the highest number of goods without waste. c) A factory that buys the cheapest raw materials available. d) A factory that exports all its products. 3) What is technical efficiency? a) Using the most advanced technology in production. b) Producing the maximum output from the given set of inputs without waste. c) Hiring the most skilled workers. d) Reducing production costs to the minimum. 4) How does technical efficiency differ from economic efficiency? a) Technical efficiency focuses on advanced technology, while economic efficiency focuses on profits. b) Technical efficiency is about optimal use of resources, while economic efficiency also considers input costs and output value. c) Technical efficiency is related to labor productivity, while economic efficiency is related to resource allocation. d) Technical efficiency is only applicable in manufacturing, while economic efficiency applies to all sectors. 5) What is a production possibility curve? a) A graph showing the profit levels of different companies. b) A graph showing the different combinations of two goods that an economy can produce with available resources and technology. c) A chart that displays the growth of an economy over time. d) A table that lists the resources available in an economy. 6) What does a point inside the PPC represent? a) Efficient use of resources. b) Inefficient use of resources. c) Unattainable production level. d) Optimal production level. 7) What does a point on the PPC curve represent? a) Unattainable production level. b) Inefficient production. c) Efficient production. d) Maximum possible waste. 8) What does a point outside the PPC curve represent? a) Attainable production level. b) Efficient use of resources. c) Unattainable production level with current resources and technology. d) Inefficient use of resources 9) What can cause the PPC to shift outward? a) Decrease in labour productivity. b) Technological advancements and increase in resources. c) Reduction in available resources. d) Higher opportunity costs.

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