When an economy is producing efficiently,it is
A)Producing a combination of goods and services beyond the production possibilities curve.
B)Getting the most goods and services from the available resources.
C)Experiencing decreasing opportunity costs.
D)Producing equal amounts of all goods.

Question

Quizplus · Accepted Answer

When an economy is producing efficiently, it is getting the most goods and services from the available resources. This means that resources are being used in the most productive manner possible, and there is no way to increase the output of one good or service without decreasing the output of another good or service. This is represented by a point on the production possibilities curve, where all resources are being used and there is no inefficiency in production. Option A is incorrect because a combination of goods and services beyond the production possibilities curve is not possible. Option C is incorrect because when an economy experiences decreasing opportunity costs, it means that it is not producing at full capacity and there is still some inefficiency in production. Option D is incorrect because an efficient economy will produce different amounts of different goods based on their relative importance and productivity.

When an Economy Is Producing Efficiently,it Is