Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Producing at a point inside the PPC
B
Producing at a point on the PPC
C
Producing at a point outside the PPC
D
Not producing at all
Understanding the Answer
Let's break down why this is correct
Answer
Economic efficiency is when an economy uses its resources in the best way possible to produce goods and services. A Production Possibilities Curve (PPC) shows the maximum output an economy can achieve with its available resources. When a point on the PPC is reached, it indicates that resources are being used efficiently. For example, if a country can produce 100 cars or 200 bikes, being on the curve means it is using its resources fully, like producing 50 cars and 100 bikes, without wasting any resources. If the country produces fewer than this maximum, it is not being economically efficient.
Detailed Explanation
Producing at a point on the curve means using resources fully. Other options are incorrect because This option suggests using fewer resources than possible; This option implies producing more than what is possible with current resources.
Key Concepts
economic efficiency
Topic
Production Possibilities Curve Shifts
Difficulty
easy level question
Cognitive Level
understand
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