Asked by Kevin Huynh on Jul 26, 2024

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If an economy can produce more of one good without giving up any of another good, then the economy's current production point is inefficient.

Inefficient

The condition where resources are not used in the best possible way, often leading to waste and loss of potential gain.

Economy

A system consisting of the production, trade, distribution, and consumption of goods and services by different agents in a given geographical location.

  • Identify the distinctions between productive efficiencies, inefficiencies, and impracticabilities.
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AW
Allie WinkleJul 30, 2024
Final Answer :
True
Explanation :
This situation indicates that the economy is not operating on its production possibility frontier, meaning it can increase production of one good without sacrificing the production of another, which is a sign of inefficiency.