When an economy is operating efficiently, which is TRUE?
A) All resources are fully employed.
B) It would be possible to increase the output of 1 good without decreasing the output of the other.
C) Resources are not fully employed or current technology is not being fully utilized.
D) This economy is operating to the right of its production possibilities curve (PPC).

Question

Quizplus · Accepted Answer

When an economy is operating efficiently, all resources are fully employed, meaning that the economy is producing on its production possibilities curve (PPC), where it is not possible to increase the output of one good without decreasing the output of another.

When an Economy Is Operating Efficiently, Which Is TRUE