When an Economy Is Operating Efficiently, the Production of More

question 207

Multiple Choice

When an economy is operating efficiently, the production of more of one good will result in the production of less of some other good because

• A) consumers do not want more of both goods.
• B) resources are limited (scarce) and efficiency implies that all are already in use.
• C) the production possibilities curve shifts inward as more of one good is produced.
• D) technological improvement can only improve the production of a single good.