If an economy is producing a level of output that is on its production possibility frontier,the economy has:
A)idle resources.
B)idle resources but is using resources efficiently.
C)no idle resources but is using resources inefficiently.
D)no idle resources and is using resources efficiently.

Question

Quizplus · Accepted Answer

When an economy is producing at a level of output that is on its production possibility frontier, it means that it is utilizing all of its available resources efficiently and there are no idle resources. Therefore, the correct answer is D.

If an Economy Is Producing a Level of Output That