If you move from a point inside the production possibility curve to a point on the production possibility curve, it follows that efficiency is:
A) increased because the economy is now on the production possibility curve.
B) increased only if production of both goods increases.
C) increased as long as the combined output of both goods increases.
D) reduced if less of one good is produced.

Question

Quizplus · Accepted Answer

Moving from a point inside the production possibility curve to a point on the curve indicates that resources are being used more efficiently, as all resources are now fully utilized to produce the maximum possible output.

If You Move from a Point Inside the Production Possibility