foothilicollegeinstructurecom tage r each question please se

foothilicollege.instructure.com tage r each question, please select what you believe is the most correct solution by simply clicking on the empty cle adjacent to that particular solution. Once you have done that, and you are ready to ading, simply click on the button \"Submit Quiz down at the bottom of the page sults will be released once the due date for the assignment has passed. Please be sure to review the sults at your convenience. Question 1 1 pts The economy that operates above (outside of) its production possibility curve is less efficient than it would be if it were operating on its production possibility curve. O Tue False 1 pts

Solution

PRODUCTION POSSIBILITY CURVE is also called as PRODUCTION POSSIBILITY FRONTIER , This is a graphical representation which shows that combination of Goods and services of any economy what it can produce.

In above mentioned question it is asked that The economy that operates above or outside of it\'s production possibility curve is less efficient than it would be if it were operating on it\'s production possibility curve is this true or false ?

The above given statement is true because if any economy is operating along its production possibility curve then it is an assumption that all factors of production are fully employed. If the economy operates above its production possibility curve there is possibility that economy would not reach the decided goal and it would affect the other resources, goods and services. If any economy operates inside it\'s production possibility curve than it is an indication of underemployed resources. It would be waste of it\'s resources.

So the best way to operate an economy to operate on it\'s production possibility curve instead of outside or within. If we will operate above or within it would be less efficient in comparison of operating it on it\'s production possibility curve.