question 1 (2 points) which of the following scenarios indicate that an economy is operating on its…

question 1 (2 points) which of the following scenarios indicate that an economy is operating on its production possibilities curve? a) the economy has unemployment. b) resources are being used inefficiently. c) the economy is using all its resources efficiently. d) there is no opportunity cost involved.

question 1 (2 points) which of the following scenarios indicate that an economy is operating on its production possibilities curve? a) the economy has unemployment. b) resources are being used inefficiently. c) the economy is using all its resources efficiently. d) there is no opportunity cost involved.

Answer

Brief Explanations:

When an economy is operating on its production - possibilities curve, it is using all its resources efficiently. Unemployment (a) means resources (labor) are not fully utilized, so the economy is inside the curve. Inefficient use of resources (b) also places the economy inside the curve. The concept of opportunity cost is always present in economic decision - making related to the production - possibilities curve, so (d) is incorrect.

Answer:

c) The economy is using all its resources efficiently.