What does the production possibility curve imply about the resource allocation?
A)Only some points on the curve are efficient.
B)All points on the curve are equally efficient.
C)A point which lies below the curve is more efficient.
D)A point which lies above the curve is readily achievable.

Question

Quizplus · Accepted Answer

All points on the production possibility curve represent efficient use of resources, meaning the economy is producing at its maximum potential given the available resources and technology.

What Does the Production Possibility Curve Imply About the Resource