Asked by
Mahsa Tahmasebi
on Nov 05, 2024
Verified
An economy that is producing on the production possibility frontier at some point other than the output of efficient allocation is
A) efficient, as it is on the production possibility frontier.
B) inefficient, as the combination of goods and services produced is not what people want.
C) efficient, as the economy is producing goods at the lowest possible cost.
D) inefficient, as that combination of goods could be produced at a lower cost if more efficient technology were employed.
Production Possibility Frontier
A curve depicting all maximum output possibilities for two goods, given a set of inputs and production technology.
Efficient Allocation
The optimal distribution of resources among competing uses to maximize output or welfare.
- Acquire understanding of how the Production Possibility Frontier illustrates efficiency and inefficiency.
Verified Answer
AJ
Learning Objectives
- Acquire understanding of how the Production Possibility Frontier illustrates efficiency and inefficiency.