The graph below is Mendork's production possibility curve for the only two goods that it produces-quirks and quarks.

-Refer to the graph above to answer this question.Which of the following statements is correct if Mendork is currently producing 500 quarks and 8 quirks?
A)This society is using competition to coordinate its economic activities.
B)This society is experiencing either unemployment or inefficiency.
C)This economy is experiencing full employment.
D)This society is not adequately answering the question:" What to produce".
E)This economy is growing quickly.

Question

The graph below is Mendork's production possibility curve for the only two goods that it produces-quirks and quarks.
 
-Refer to the graph above to answer this question.Which of the following statements is correct if Mendork is currently producing 500 quarks and 8 quirks?
A)This society is using competition to coordinate its economic activities. 
B)This society is experiencing either unemployment or inefficiency. 
C)This economy is experiencing full employment. 
D)This society is not adequately answering the question:" What to produce". 
E)This economy is growing quickly.

Quizplus · Accepted Answer

If Mendork is currently producing 500 quarks and 8 quirks, it is operating inside the production possibility curve. This means that it is experiencing either unemployment or inefficiency, as it has the potential to produce more of both goods given its resources and technology. Therefore, option B is the correct choice. The other options do not accurately describe the scenario.

The Graph Below Is Mendork's Production Possibility Curve for the Only