If an economy is productively inefficient, it could improve its situation by
A) moving onto its production possibilities boundary.
B) acquiring more resources.
C) moving beyond its production possibilities boundary.
D) moving along its production possibilities boundary.
E) trading some of its resources.

Question

Quizplus · Accepted Answer

Moving onto its production possibilities boundary means utilizing all its resources efficiently, which can improve productivity without acquiring more resources or moving beyond the production possibilities boundary. Trading resources may be helpful in certain situations, but it may not necessarily improve productivity if the economy is not utilizing its resources efficiently.

If an Economy Is Productively Inefficient, It Could Improve Its