Question

question
given a production possibilities frontier (ppf) and holding resources and technology constant, when is a society producing at its maximum efficiency?
select an answer
a. when the society is producing at a point inside the production possibilities frontier
b. when the society is producing at a point outside and to the right of the production possibilities frontier
c. when the society is producing at any point on the production possibilities frontier
d. when the society is producing at a point outside and above the production possibilities frontier

Explanation:

The production possibilities frontier (PPF) represents all combinations of two goods that a society can produce using all available resources and technology fully and efficiently. Points inside the PPF mean resources are underutilized (inefficient). Points outside the PPF are unattainable with current resources and technology. Only points on the PPF represent maximum productive efficiency, as all resources are fully and optimally employed.

Answer:

C. when the society is producing at any point on the production possibilities frontier