In autarky, when a community maximizes its standard of living its production point is ?
Correct answer: B. on the production possibility frontier
- A. below the production possibility frontier
- B. on the production possibility frontier
- C. above the production possibility frontier
- D. can't tell without more information
Explanation
A community cannot maximize its standard of living while leaving resources idle, so its production must be efficient and lie on the production possibility frontier. A point below the frontier represents inefficient production, while a point above it is unattainable.
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