When Production Is Efficient,

question 142

Multiple Choice

When production is efficient, .

• A) we can satisfy our all wants
• B) the opportunity cost is as low as possible
• C) our choice of the goods can be either on or within the production possibilities frontier
• D) we face a tradeoff and incur an opportunity cost

---

Definitions:

Production Possibilities Frontier

A graphical representation showing the maximum combinations of goods and/or services that can be produced with a fixed set of resources.

Opportunity Cost

The lost benefit that could have been enjoyed if the chosen option had not been taken, implying the trade-off of forgoing the next best alternative.

Efficient Production Process

A method of production that uses the least amount of resources to achieve the maximum output.

Resources And Technology

The combination of natural resources, human resources, and technology that firms use to produce goods and services.