If an economy is producing at a point on its production possibilities frontier,it is:
A)efficient in production and allocation.
B)efficient in production but not necessarily in allocation.
C)efficient in allocation but not necessarily in production.
D)not necessarily efficient in production or allocation.

Question

Quizplus · Accepted Answer

Producing on the production possibilities frontier indicates that an economy is using all its resources efficiently, meaning it is efficient in production. However, this does not guarantee that the resources are being allocated in the most beneficial way for society, hence not necessarily efficient in allocation.

If an Economy Is Producing at a Point on Its