An Economy That Is Producing on the Production Possibility Frontier

Multiple Choice

An economy that is producing on the production possibility frontier at some point other than the output of efficient allocation is

A) efficient, as it is on the production possibility frontier.
B) inefficient, as the combination of goods and services produced is not what people want.
C) efficient, as the economy is producing goods at the lowest possible cost.
D) inefficient, as that combination of goods could be produced at a lower cost if more efficient technology were employed.