Refer to Figure 1.7. This economy will achieve efficiency in production at

Question

Quizplus · Accepted Answer

Efficiency in production occurs when the economy is producing at the highest possible level of output with the given resources and technology. This occurs at the points where the production possibility frontier (PPF) is tangent to the highest possible indifference curve (IC). In this case, those points are D, G, and J. Therefore, the economy will achieve efficiency in production at those points.