If resources are combined efficiently in production, then the society
A) is producing at the most-desirable point on the production possibility frontier.
B) is producing at a point on the production possibility frontier but not necessarily at the most-desirable point.
C) is producing at a point outside the production possibility frontier.
D) is experiencing economic growth.

Question

Quizplus · Accepted Answer

When resources are combined efficiently in production, it means that the society is utilizing its resources in the best possible way to produce goods and services, which places it on the production possibility frontier (PPF). However, being on the PPF does not automatically mean that the society is at the most desirable point, as the most desirable point can vary based on preferences and priorities regarding the mix of goods and services produced.

If Resources Are Combined Efficiently in Production, Then the Society