If an economy is operating within its PPF:
A) It is productively efficient.
B) It can produce more of both goods with the given resources.
C) Resources are being fully utilised.
D) The economy should reduce its production.

Question

Quizplus · Accepted Answer

When an economy is operating within its Production Possibility Frontier (PPF), it means that not all resources are being fully utilized. Therefore, it can produce more of both goods with the given resources, indicating that there is room for improvement in terms of efficiency.

If an Economy Is Operating Within Its PPF