Consider a country that produces only two goods: bird feeders and binoculars.Suppose it is possible for this country to increase its production of bird feeders without producing fewer binoculars.In this case,its current output combination is inefficient.

Question

Quizplus · Accepted Answer

If the country can increase its production of one good without producing fewer of the other, it means that it is not at the production possibility frontier. Therefore, it is producing fewer goods than it is capable of producing, making its current output combination inefficient.

Consider a Country That Produces Only Two Goods: Bird Feeders