Exhibit 2-5 Production possibilities curve In Exhibit 2-5, movement between which of the following points represents an increase in economic efficiency?

Question

Exhibit 2-5  Production possibilities curve  In Exhibit 2-5, movement between which of the following points represents an increase in economic efficiency?

Quizplus · Accepted Answer

Movement from point C to D represents an increase in economic efficiency because it indicates the economy is able to produce more of both goods without sacrificing the production of another good. This represents a gain in efficiency or improved technology.

Exhibit 2-5 Production Possibilities Curve in Exhibit 2-5, Movement Between