Question

Assume that, given factors of production and existing knowledge and technology, it is not possible to produce more of one good without foregoing the opportunity to produce some of another good. Economists would characterize this situation as:

Answer 1

Answer: The correct answer is "efficient".

Explanation: Economists would characterize this situation as: efficient.

There are situations in which the possibilities of utility improvement are exhausted, reaching an exact point where it is not possible to improve without losing an opportunity. Basically that is the condition posed by the existence of efficient allocation.