Production is efficient when
A) it generates a point beyond the production possibility curve.
B) the economy cannot produce more of one good without giving up the production of another good.
C) technological change occurs.
D) the maximum amounts of the most important good are produced.

Question

Quizplus · Accepted Answer

Production is efficient when the economy is producing the maximum output of goods and services using the given resources and technology. This means that the economy cannot produce more of one good without giving up the production of another good. This situation is depicted by a point on the production possibility curve where all resources are fully utilized and any increase in the production of one good can only be achieved by reducing the production of another good. Therefore, choice B is the correct answer.

Production Is Efficient When