If you move from a point on the production possibilities curve to a point inside the production possibilities curve,it follows that
A) efficiency is increased because more of each good is produced.
B) efficiency is increased because more of one good is produced.
C) efficiency is increased,even if less of each good is produced.
D) efficiency is reduced.
E) efficiency remains same.

Question

Quizplus · Accepted Answer

Moving inside the production possibilities curve means that the economy is producing less than it is capable of producing. This indicates a decrease in efficiency as the economy is not utilizing all its resources to their full potential.

If You Move from a Point on the Production Possibilities