If a country is producing efficiently and is on the production possibilities frontier, the only way to produce more of one good is to produce less of the other.

Question

Quizplus · Accepted Answer

If a country is producing efficiently and is on the production possibilities frontier, it means that it is already producing at its maximum potential. Therefore, in order to produce more of one good, it has to reallocate its resources from the production of the other good, reducing its production. This is known as the principle of opportunity cost.

If a Country Is Producing Efficiently and Is on the Production