If an economy is producing efficiently, then a it is possible to produce more of both goods without increasing the quantities of inputs that are being used. b there is no way to produce more of one good without producing less of another good. c it is not possible to produce more of any good at any cost. d it is possible to produce more of one good without producing less of the other.

Question

Clay Dillon

Business

23 December, 21:12

If an economy is producing efficiently, then a it is possible to produce more of both goods without increasing the quantities of inputs that are being used. b there is no way to produce more of one good without producing less of another good. c it is not possible to produce more of any good at any cost. d it is possible to produce more of one good without producing less of the other.

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Answers (1)

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Jaelyn Cook · Answer 1

The correct answer is option b.

Explanation:

An economy is said to be producing goods efficiently if it will not be able to produce more of a commodity using the given resources. In other words, we can say that it will need to decrease the production of one good if it wants to produce more units of the other.

This is because of scarcity of resources, we know that in an economy resources are scarce and want and needs are unlimited. So we need to use these resources in such a way that we derive maximum utility or satisfaction from them.