When an economy is producing efficiently,it is
A)Producing a combination of goods and services beyond the production possibilities curve.
B)Getting the most goods and services from the available resources.
C)Experiencing decreasing opportunity costs.
D)Producing equal amounts of all goods.

Question

Quizplus · Accepted Answer

When an economy is producing efficiently, it is getting the most goods and services from the available resources. This means that the economy is producing at the point on the production possibilities curve where it is not possible to produce more of one good without giving up some of the production of the other good. This is known as allocative efficiency, where resources are allocated in the most efficient way to produce the goods and services that society values the most.

When an Economy Is Producing Efficiently,it Is