If an economy is producing on its production possibility frontier but is not producing what people want, the economy
A) is experiencing technological advancement.
B) is producing at more than one point on the production possibility frontier.
C) is not achieving output efficiency.
D) is not being productively efficient.

Question

Quizplus · Accepted Answer

Producing on the production possibility frontier (PPF) indicates that an economy is utilizing all its resources efficiently, but if it's not producing what people want, it means the economy is not achieving output efficiency. Output efficiency requires that goods produced are aligned with consumer preferences.

If an Economy Is Producing on Its Production Possibility Frontier