An economy's production of two goods is efficient if
A)all members of society consume equal portions of the goods.
B)the goods are produced using only some of society's available resources.
C)it is impossible to produce more of one good without producing less of the other.
D)the opportunity cost of producing more of one good is zero.

Question

Quizplus · Accepted Answer

Efficiency in production means that the economy is achieving the maximum possible output using its available resources. This means that it is impossible to produce more of one good without producing less of the other. This is known as the concept of opportunity cost. Therefore, option C is the correct answer. Option A is incorrect as it suggests equality in consumption, which may not necessarily indicate efficiency in production. Option B is incorrect as it suggests that only some resources are being used, which is not necessarily indicative of efficiency. Option D is incorrect as it suggests that there is no opportunity cost involved, which is not the case.

An Economy's Production of Two Goods Is Efficient If