When a country is producing goods and services efficiently it:
A) is producing at a point on or below its production possibilities frontier.
B) is getting the most output by using all its available resources.
C) is trading with other countries.
D) is able to reach a point beyond its production possibilities frontier.

Question

Quizplus · Accepted Answer

When a country is producing goods and services efficiently, it means that it is using all its available resources in the most productive way possible, resulting in the highest output possible. This implies that the country is producing at a point on or above its production possibilities frontier, which represents the maximum possible output that can be produced by the country using all its resources. However, it does not necessarily mean that the country is trading with other countries or able to reach a point beyond its production possibilities frontier, as these factors depend on a variety of other economic and political factors.

When a Country Is Producing Goods and Services Efficiently It