If an economy is productively inefficient,it could improve its situation by
A)moving along its production possibilities boundary.
B)moving beyond its production possibilities boundary.
C)moving onto its production possibilities boundary.
D)acquiring more resources.
E)trading some of its resources.

Question

Quizplus · Accepted Answer

If an economy is productively inefficient, it means that it is not using its resources efficiently and is producing below its production possibilities boundary. Moving onto its production possibilities boundary would mean that the economy is using its resources more efficiently and producing at its maximum potential without compromising on the allocation of resources. Other options like acquiring more resources or trading some of its resources may help in increasing the output, but they do not necessarily make the economy more productive. Moving beyond its production possibilities boundary is not possible as it is the maximum limit of what can be produced with the given resources and technology.

If an Economy Is Productively Inefficient,it Could Improve Its Situation