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Jennifer Aguilar
on Oct 26, 2024

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If an economy is producing a level of output that is on its production possibility frontier,the economy has:

A) idle resources.
B) idle resources but is using resources efficiently.
C) no idle resources but is using resources inefficiently.
D) no idle resources and is using resources efficiently.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set amount of inputs, highlighting concepts of opportunity cost, efficiency, and trade-offs.

Idle Resources

Resources in an economy that are not being fully utilized, often leading to inefficiency.

Output

The total amount of goods and services produced by an economy or a production process.

  • Gain insight into the concepts underpinning the production possibility frontier (PPF) and its impact on allocating resources and achieving efficiency.
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Sarah FrantzkeNov 02, 2024
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