Production efficiency is represented by ________ a production possibilities frontier.
A) all points on
B) all points inside
C) all points outside
D) a movement along
E) only one point on

Question

Quizplus · Accepted Answer

Production efficiency means that resources are being used in the most efficient way possible. This is represented by all points on the production possibilities frontier, which shows the maximum possible level of output that can be produced with the given resources and technology. Points inside the frontier represent inefficiency, while points outside the frontier are unattainable given current resources and technology. A movement along the frontier represents a shift in production of one good for another, but does not necessarily indicate an increase in production efficiency. Only one point on the frontier would not accurately represent the range of production possibilities.

Production Efficiency Is Represented by ________ a Production Possibilities Frontier