Assume that, given factors of production and existing knowledge and technology, it is not possible to produce more of one good without foregoing the opportunity to produce some of another good. Economists would characterize this situation as:
A)inefficient.
B)efficient.
C)due to unemployment.
D)a point outside the production possibilities frontier.

Question

Assume that, given factors of production and existing knowledge and technology, it is not possible to produce more of one good without foregoing the opportunity to produce some of another good. Economists would characterize this situation as:
A)​inefficient.
B)​efficient.
C)​due to unemployment.
D)​a point outside the production possibilities frontier.

Quizplus · Accepted Answer

This situation describes a point on the production possibilities frontier (PPF), where resources are being used efficiently. At any point on the PPF, producing more of one good requires sacrificing some amount of another good, indicating efficient use of resources.

Assume That, Given Factors of Production and Existing Knowledge and Technology