Answer
The correct answer is D. Increased economic efficiency.
Explanation
The question is focused on the outcomes of efficient allocation of factors of production, which include land, labor, capital, and entrepreneurship. Efficient allocation leads to the optimal use of resources, maximizing output and economic welfare.
Here are further explanations.
- Option A: Increased unemployment. This is incorrect because efficient allocation typically leads to better job matching and utilization of labor, thereby reducing unemployment.
- Option B: Wasted resources. This option is also incorrect, as efficient allocation aims to minimize waste and ensure that resources are used effectively to produce goods and services.
- Option C: Higher production costs. This is not accurate because efficient allocation usually results in lower production costs by optimizing resource use.