Figure 11-2

-As we move down the production possibilities schedule in Figure 11-2, each successive point is
A)less efficient.
B)more efficient.
C)equally efficient.
D)more or less efficient; we cannot tell which.

Question

Figure 11-2
​ 
-As we move down the production possibilities schedule in Figure 11-2, each successive point is
A)less efficient. 
B)more efficient. 
C)equally efficient. 
D)more or less efficient; we cannot tell which.

Quizplus · Accepted Answer

Each successive point on a production possibilities schedule represents a different allocation of resources between two goods, but all points on the curve are considered to be efficient. The efficiency comes from the fact that all resources are fully utilized; moving along the curve simply reflects a trade-off between the two goods being produced.

Figure 11-2 ​

Figure 11-2