If an economy is producing a level of output that is on its production possibilities curve, the economy
A) has idle resources.
B) has idle resources but is using resources efficiently.
C) has no idle resources but is using them inefficiently.
D) has no idle resources and is using resources efficiently.

Question

Quizplus · Accepted Answer

This is because if an economy is producing at a point on its production possibilities curve, it is producing the maximum possible output with the given resources and technology. Therefore, there are no idle resources and they are being used efficiently.

If an Economy Is Producing a Level of Output That