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.

Question

Quizplus · Accepted Answer

A society producing on its production possibility frontier is fully employing its resources, but it does not necessarily mean it is achieving output efficiency, as output efficiency also depends on the allocation of resources to produce the desired mix of goods and services.

If a Society Is Producing at a Point Along Its