Question

When an economy is operating efficiently, the production of one more unit of a good will result in some loss of production of another good because:a) resources are limited and efficiency implies that all resources are already in use. b) consumers will not want more of both goods. c) the production possibilities frontier (PPF) shifts inward as more of only one good is produced. d) technology can only improve the production of one good.

Answer 1

Answer:

a) resources are limited and efficiency implies that all resources are already in use

Explanation:

If production is efficient, it means that the economy is producing on the production possibility frontier and all resources are in use.

To produce one unit of a good, the economy has to forgo producing one unit of the other good.

I hope my answer helps you.