Refer to the graph below.As you move from point B to point A,
A) efficiency is increased because we have more of good X.
B) efficiency is decreased because we have less of good Y.
C) efficiency is increased because the economy's productive resources are employed more effectively.
D) the change in efficiency is unclear.
E) efficiency is unchanged.

Question

Refer to the graph below.As you move from point B to point A, 
A) efficiency is increased because we have more of good X. 
B) efficiency is decreased because we have less of good Y. 
C) efficiency is increased because the economy's productive resources are employed more effectively. 
D) the change in efficiency is unclear. 
E) efficiency is unchanged.

Quizplus · Accepted Answer

As we move from point B towards point A, the production and consumption of both goods X and Y are increased. This indicates that the economy's productive resources are being utilized more effectively, resulting in an increase in efficiency. Therefore, option C is the best choice.

Refer to the Graph Below