Q. “It is the point at which a country’s economy is most efficiently producing its various goods and services and, therefore, allocating its resources in the best way possible”- defines which of the following?
An allocation of the scarce resource of the economy gives rise to a particular combination of different goods and services.
- Given the total amount of resources, it is possible to allocate the resources in many different ways and, thereby achieving different mixes of all possible goods and services.
- The collection of all possible combinations of the goods and services that can be produced from a given amount of resources and a given stock of technological knowledge is called the production possibility set/frontier of the economy.
Source: Ramesh Singh