Society can operate on the production possibilities curve only if it has achieved efficiency.

Question

Quizplus · Accepted Answer

The production possibilities curve represents the maximum output of two goods that a society can produce at full efficiency with its available resources and technology. Operating on the curve indicates that the society is efficiently using its resources, with no way to increase the production of one good without decreasing the production of another.

Society Can Operate on the Production Possibilities Curve Only If