Suppose the country of Popcorn produces only jets and corn. If Popcorn cannot produce any more jets without giving up corn, we say that Popcorn has achieved
A) the highest marginal benefit.
B) the lowest marginal cost.
C) the highest opportunity cost.
D) production efficiency.

Question

Quizplus · Accepted Answer

When a country cannot produce more of one good without giving up some amount of another good, it has achieved production efficiency. This means it is operating on its production possibility frontier, where resources are allocated in the most efficient way possible.

Suppose the Country of Popcorn Produces Only Jets and Corn