An economic outcome is said to be efficient if the economy is:

Question

Quizplus · Accepted Answer

An economic outcome is said to be efficient if the economy is using all of the resources it has available, which means producing on the production possibilities frontier. This is because producing inside the frontier would mean that resources are either unused or used inefficiently, while producing beyond the frontier would mean that resources are not available or not yet developed to support that level of production. Therefore, the most efficient outcome is achieved when all available resources are utilized in the most productive way possible.

An Economic Outcome Is Said to Be Efficient If the Economy