Question
If an economy is producing inefficiently, it is
a. possible to increase production of one good at the expense of another.
b. possible to increase production with no effort.
c. possible to increase production of all goods simultaneously.
d. not possible to increase production of any good.
e. not possible to increase economic growth.
a. possible to increase production of one good at the expense of another.
b. possible to increase production with no effort.
c. possible to increase production of all goods simultaneously.
d. not possible to increase production of any good.
e. not possible to increase economic growth.
Ask by Chan Lowe. in the United States
Mar 21,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
It’s possible to increase the production of one good by reducing the production of another in an inefficient economy.
Solution
To analyze the situation of an economy producing inefficiently, let’s consider the implications of inefficiency:
- Inefficient Production: This means that the economy is not utilizing its resources to their full potential. There are resources that could be better allocated to produce more goods.
Now, let’s evaluate the options:
a. Possible to increase production of one good at the expense of another: This is true because if the economy is inefficient, reallocating resources can lead to an increase in the production of one good while potentially decreasing the production of another.
b. Possible to increase production with no effort: This is misleading. While inefficiency indicates that there is room for improvement, some effort is typically required to reallocate resources effectively.
c. Possible to increase production of all goods simultaneously: This is generally not true in the context of inefficiency. While it may be possible to increase the production of some goods, it is not guaranteed that all goods can be increased simultaneously without trade-offs.
d. Not possible to increase production of any good: This is false. The very definition of inefficiency suggests that there is potential to increase production.
e. Not possible to increase economic growth: This is also false. An inefficient economy can still grow by improving the allocation of resources.
Based on this analysis, the correct answer is:
a. possible to increase production of one good at the expense of another.
Answered by UpStudy AI and reviewed by a Professional Tutor
Like
error msg
Explain 
Simplify this solution Beyond the Answer
When an economy is producing inefficiently, it means resources are not being utilized optimally. This presents an exciting opportunity! It’s often possible to increase the production of one good at the expense of another, showcasing the trade-offs that come with resource distribution. By reallocating resources, the economy can move closer to its production possibilities frontier.
Thinking of inefficiency as a ‘fluffy pillow’—it allows for some wiggle room! Even without strict adjustments, reallocating things like labor or materials can lead to better outcomes. However, common mistakes can include sticking rigidly to inefficient production methods simply because “that’s how it’s always been done.” Embrace change, and let the magic of resource optimization do its work!
