If a country is producing at point where an increase in the production of one go
ID: 1126375 • Letter: I
Question
If a country is producing at point where an increase in the production of one good requires a reduction in the production of another good, then it must be producing at an: A) Inefficient point B) Efficient point C) Unattainable point D) Undesirable point If a country is producing at point where an increase in the production of one good requires a reduction in the production of another good, then it must be producing at an: A) Inefficient point B) Efficient point C) Unattainable point D) Undesirable point If a country is producing at point where an increase in the production of one good requires a reduction in the production of another good, then it must be producing at an: A) Inefficient point B) Efficient point C) Unattainable point D) Undesirable pointExplanation / Answer
Answer
B) Efficient point
The PPF shows efficient production, the efficient production means using all available resources at its full capacity so if production of a good is increased the others should be reduced because there is no resource to increase production.
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