Suppose that an economy is producing on its production possibilities curve but is not producing quantities of each good where the marginal benefit equals the marginal cost for each good.This economy:

A) should not change its production because it cannot improve its allocation by shifting resources.
B) can improve its allocation by lowering the unemployment rate.
C) can improve its allocation by producing more of one good and less of the other.
D) can improve its allocation by producing more of both goods.

If an economy is producing on its production possibilities curve but not at the point where marginal benefit equals marginal cost for each good, it means that there is an opportunity to improve the allocation of resources. This can be achieved by producing more of the good with a higher marginal benefit and less of the good with a lower marginal benefit. This will result in a movement towards the point where marginal benefit equals marginal cost for each good, leading to a more efficient allocation of resources. Therefore, option C is the best choice.