Question

In an economy (or an organization, or a household) in which resources are allocated reasonably efficiently, it is ____ possible to increase performance along one dimension without sacrificing on some other dimension.

Answer 1

Answer: Rarely if ever

Explanation:

In an economy resources are limited while human wants are unlimited. So resources must be used in a way that maximum consumer wants can be met efficiently. In an economy when resources are allocated efficiently it is rarely possible to make some else better off without making someone else worse off. That is it is rarely possible to increase performance of some without sacrificing on some other dimension.