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A small economy produces only pizzas and jeans.If resources are used inefficiently in the economy,
A) it will be possible to produce more pizzas without decreasing the production of jeans.
B) the economy will be operating at a point on its production possibilities curve.
C) the economy will be operating at a point outside its production possibilities curve.
D) it will not be possible to produce more jeans or pizzas.
Production Possibilities Curve
A graph that shows the maximum quantity of one good that can be produced for each possible quantity of another good produced, illustrating the trade-offs and opportunity costs of production choices.
Inefficiently
A descriptor for processes or activities that do not use resources in the best possible way, resulting in wasted effort or energy and not achieving maximum productivity.
- Analyze the significance and the allocation efficiency present in the production possibilities frontier.
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Learning Objectives
- Analyze the significance and the allocation efficiency present in the production possibilities frontier.
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