Asked by
Daimler Benz Olivar
on Dec 08, 2024
Verified
If a society is producing at a point along its production possibility frontier, then the society
A) is fully employing its resources so it must be achieving output efficiency.
B) is fully employing its resources, but not necessarily achieving output efficiency.
C) is underallocating resources so it must be inefficient.
D) is overallocating resources so efficiency is indeterminate.
Production Possibility Frontier
A graph showing the highest possible combinations of two goods that can be made using existing resources and technology.
Output Efficiency
The optimized state where goods or services are produced at the lowest possible cost and with the best allocation of resources.
- Comprehend the implications of production within or on the Production Possibility Frontier (PPF) for an economy's efficiency and technological progress.
Verified Answer
MH
Learning Objectives
- Comprehend the implications of production within or on the Production Possibility Frontier (PPF) for an economy's efficiency and technological progress.
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