When an economy is producing efficiently,it is
A)Producing a combination of goods and services beyond the production possibilities curve.
B)Getting the maximum goods and services possible 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 means that it is producing the maximum possible output from the given resources. This is represented by the point on the production possibilities curve (PPC) where the economy is utilizing all its resources effectively. Any point inside the PPC represents an inefficient use of resources while any point outside the curve is unattainable. Therefore, option B is correct as it indicates that an economy is getting the maximum goods and services possible from the available resources.

When an Economy Is Producing Efficiently,it Is