When all of the available factors of production are being efficiently employed, the
A) economy is producing at a point beyond its PPF.
B) economy is producing at a point on its PPF.
C) PPF disappears.
D) economy is producing at a point within its PPF.
E) opportunity cost of changing production is infinite.

Question

Quizplus · Accepted Answer

When all available factors of production are being efficiently employed, the economy is producing at a point on its production possibility frontier (PPF). This is the point where the economy is producing the maximum possible output with its available resources, and any further increase in production would require additional resources or an improvement in technology.

When All of the Available Factors of Production Are Being