If an economy can gain more of good A without giving up some of good B, the economy is operating on its production possibilities curve for goods A and B.

Question

Quizplus · Accepted Answer

If an economy can gain more of good A without giving up some of good B, it means the economy is operating inside its production possibilities curve, not on it. Operating on the curve implies maximum efficiency, where increasing production of one good requires sacrificing some of the other.

If an Economy Can Gain More of Good a Without