If an economy is producing at a point on its production possibilities frontier:
A)it is efficient in production and allocation.
B)it is efficient in production but not necessarily in allocation.
C)it is efficient in allocation but not necessarily in
D)production.it is not necessarily efficient in production or allocation.

Question

Quizplus · Accepted Answer

Producing on the production possibilities frontier means the economy is efficient in production, as it is using all available resources. However, it does not necessarily mean that the allocation of resources is efficient in terms of meeting consumer preferences.

If an Economy Is Producing at a Point on Its