(Figure: PPF of Econia (A Small Nation)) Looking at the Production

question 13

Multiple Choice

(Figure: PPF of Econia (a small nation) ) Looking at the production possibilities frontier (PPF) of Econia, assume that the country is producing at point

• A) Econia is producing wheat and cotton in amounts that are as efficient as possible.
• B) Econia would have greater production efficiency if it moved from D to B
• C) Econia is neither productively nor technically efficient.
• D) Econia would have greater allocative efficiency if it moved from D to B

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Definitions:

Activities

Activities are tasks, operations, or processes carried out by individuals or groups in the pursuit of their objectives or interests.