When an economy is operating with maximum efficiency, the production of more of commodity A will entail the production of less of commodity B because
A)resources are specialized and cannot be easily reallocated.
B)resources are limited.
C)the structure of demand is fixed at any point in time.
D)material wants are insatiable.

Question

Quizplus · Accepted Answer

When an economy is operating at maximum efficiency, it is on its production possibility frontier, meaning all resources are fully utilized. Producing more of commodity A requires reallocating resources from the production of commodity B, due to the limited nature of resources.

When an Economy Is Operating with Maximum Efficiency, the Production