A society that is producing its maximum combination of goods and using all available resources for production
A) has minimized its opportunity cost.
B) has maximized its opportunity cost.
C) is operating on its production possibilities frontier (PPF).
D) is operating outside its PPF.
E) has eliminated scarcity.

Question

Quizplus · Accepted Answer

A society that is producing its maximum combination of goods and using all available resources for production is operating on its production possibilities frontier (PPF), which represents the maximum possible output that can be produced given the available resources and technology. This means that all resources are being allocated efficiently and any further production of one good can only be achieved by giving up some production of another good, which represents the concept of opportunity cost. Therefore, the society has not eliminated scarcity but has efficiently utilized the available resources to produce the maximum feasible output.

A Society That Is Producing Its Maximum Combination of Goods