On a Production Possibilities Frontier, When Is Production Efficient

question 136

Multiple Choice

On a production possibilities frontier, when is production efficient?

• A) if the production point is on the frontier
• B) if the production point is outside the frontier
• C) if the production point is on or inside the frontier
• D) if the production point is inside the frontier

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Definitions:

Restriction of Productivity

Any factor or practice that limits or hinders the efficiency and effectiveness of production processes, thereby reducing overall productivity.

Piece Rate

A payment method where employees are paid a fixed rate for each unit of production completed, rather than receiving a fixed salary.

Widgets

Generic term used for any hypothetical or generic product, often used in discussions or explanations about manufacturing or economics.

Performance Measure

Criteria or standards used to evaluate the effectiveness and efficiency of actions or outcomes.