All output combinations that fall on an economy's production possibilities curve
A) can be chosen simultaneously.
B) represent the minimum amounts of each good that can be produced.
C) show the distribution of goods and services in the economy.
D) tell us little or nothing about a society's level and composition of output.
E) represent the full and efficient use of that economy's resources.

Question

Quizplus · Accepted Answer

All output combinations that fall on the production possibilities curve represent the full and efficient use of an economy's resources. This means that any point on the curve represents the maximum output that can be produced with the given set of resources and technology. Therefore, the correct choice is E) represent the full and efficient use of that economy's resources.

All Output Combinations That Fall on an Economy's Production Possibilities