An economy is efficient if it is:
A)possible to produce more of all goods and services.
B)possible to produce more of one good without producing less of another.
C)not possible to produce more of one good without producing less of another good.
D)producing a combination of goods.

Question

Quizplus · Accepted Answer

An economy is considered efficient if it is operating on its production possibility frontier, meaning it cannot produce more of one good without sacrificing the production of another. This is described by choice C, indicating that resources are fully and efficiently utilized, and any attempt to increase production of one good necessitates a reduction in the production of another.

An Economy Is Efficient If It Is