An economy's production of two goods is efficient if

a. all members of society consume equal portions of the goods.

b. the goods are produced using only some of society's available resources.

c. it is impossible to produce more of one good without producing less of the other.

d. the opportunity cost of producing more of one good is zero.

Question

Business

Karsyn Boyle

2 May, 13:45

An economy's production of two goods is efficient if

a. all members of society consume equal portions of the goods.

b. the goods are produced using only some of society's available resources.

c. it is impossible to produce more of one good without producing less of the other.

d. the opportunity cost of producing more of one good is zero.

+1

Answers (1)

Know the Answer?

Enzo Byrd · Answer 1

The correct answer is option c.

Explanation:

We know that the resources in an economy are scarce. We need to use these scarce resources that have alternative uses to satisfy unlimited wants and needs.

The resources are said to be efficiently allocated if it is not possible to increase the production of one good without reducing the production of the other.

If it is possible to increase the production of both goods or increase the production of one while keeping other constant, it means that the resources are not efficiently allocated.