All points on the production possibilities curve represent efficient levels of production.

Question

Quizplus · Accepted Answer

The production possibilities curve represents the maximum output that can be produced with the given resources and technology. Any point on the curve represents an efficient level of production because all resources are fully utilized to produce goods and services. Any point inside the curve represents an inefficient level of production because resources are not fully utilized, and any point outside the curve represents an unattainable level of production given the current resources and technology.

All Points on the Production Possibilities Curve Represent Efficient Levels