What does it mean if an economy is producing efficiently?
A) There is no way to produce more of one good without producing less of the other.
B) It is possible to produce more of both goods.
C) It is possible to produce more of one good without producing less of the other.
D) It is not possible to produce more of one good at any cost.

Question

Quizplus · Accepted Answer

Efficient production means that the economy is operating on its production possibility frontier, where producing more of one good requires sacrificing some of another, indicating no resources are wasted.

What Does It Mean If an Economy Is Producing Efficiently