Whenever the economy is producing the maximum amount of goods given the level of technology and the amount of resources
A) the number of resources used should be decreased since society must protect its scarce resources.
B) the concept of opportunity costs does not exist.
C) more goods will be available than customers want to buy.
D) the economy is producing efficiently.

Question

Quizplus · Accepted Answer

Whenever the economy is producing the maximum amount of goods given the level of technology and the amount of resources, it is said to be producing at the highest level of efficiency known as the production possibility frontier or boundary. This means that the economy is using all its resources in the most efficient manner possible and producing the maximum output possible. Therefore, choice D is correct. Option A is incorrect because the idea is to use resources more efficiently, not to reduce them. Option B is incorrect because the concept of opportunity cost always exists, even at maximum efficiency. Option C is incorrect because if more goods are produced than customers want, it implies that the economy is not producing according to the demands of the market.

Whenever the Economy Is Producing the Maximum Amount of Goods