Figure 2-7
-If an economy operates at point A on the production possibilities curve shown in Figure 2-7,
A) to produce more food, it would have to reduce its production of clothing.
B) to produce more clothing, it would have to reduce the production of food.
C) it is operating efficiently.
D) all of the above would be correct.

Question

Figure 2-7 
-If an economy operates at point A on the production possibilities curve shown in Figure 2-7,
A) to produce more food, it would have to reduce its production of clothing. 
B) to produce more clothing, it would have to reduce the production of food. 
C) it is operating efficiently. 
D) all of the above would be correct.

Quizplus · Accepted Answer

Point A on the production possibilities curve indicates efficient use of resources, meaning any increase in the production of one good (food or clothing) would require a decrease in the production of the other.

Figure 2-7 -If an Economy Operates at Point a on the Production