Narrbegin Exhibit 2.7 Production possibilities frontier Narrend
-Which of the following moves from one point to another in Exhibit 2.7 would represent an increase in economic efficiency?

Question

Narrbegin Exhibit 2.7 Production possibilities frontier  Narrend
-Which of the following moves from one point to another in Exhibit 2.7 would represent an increase in economic efficiency?

Quizplus · Accepted Answer

Moving from point X to point W represents an increase in economic efficiency because it means producing more of both goods (guns and butter) without any increase in the use of resources. This would result in a shift from inefficient production to efficient production, as all points along the production possibilities frontier represent efficient use of resources.

Narrbegin Exhibit 2.7 Production Possibilities Frontier Narrend