Final answer:
Subaru Canada's higher scrap rate is an example of inefficiency, which denotes the wastage of resources and potential increase in production costs affecting profitability.
Step-by-step explanation:
Subaru Canada experiencing a scrap rate higher than the industry average is an example of inefficiency. Inefficiency in a business context refers to the inability to produce a desired outcome without wasting resources such as materials, energy, or time. The high scrap rate indicates that Subaru Canada is using more materials than necessary to produce its products, which leads to a wastage of resources and likely increases production costs, impacting the company's profitability.