If a Country Is Producing Efficiently and Is on the Production

question 229

True/False

If a country is producing efficiently and is on the production possibilities frontier,the only way to produce more of one good is with an advance in technology.

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Definitions:

Labor

Human effort, both physical and mental, used in the production of goods and services.

Production Possibilities

The various combinations of goods and services that can be produced from a fixed set of resources.

Circular-Flow Diagram

An economic model depicting how money, goods, and services move through an economy between households and firms.

Economy

An organized system of production, distribution, and consumption of goods and services within a specific geographical area, involving various agents and market forces.