If government use of resources becomes more efficient, then:
A)a rational society will necessarily spend more resources on the public sector.
B)a rational society will necessarily spend fewer resources on the public sector.
C)society necessarily moves from inside the production possibility frontier out toward that frontier.
D)a rational society necessarily chooses more of both public and private goods.
E)none of the above.

Question

Quizplus · Accepted Answer

Efficiency in government resource use means doing more with the same resources or achieving the same outcomes with fewer resources. This shift implies that society can produce more overall, moving closer to or reaching its production possibility frontier, which represents the maximum output levels for two types of goods (public and private) given fixed resources and technology.

If Government Use of Resources Becomes More Efficient, Then