Respuesta :
If creating more of one good without producing less of the other good is not conceivable, the production of an economy is said to be efficient for two goods.
Production of two goods is considered to be efficient when there is no adverse effect from increasing the production of one item and when the production of the second good does not need to be decreased to make room for the increased output of the first good.This indicates that the economy has the resources to handle the volume of items generated.If the economy is efficient, for instance, there won’t be a drop in the production of other items like motorcycles if the automobile sector wishes to create more vehicles each year.
We are aware of the scarcity of resources in economies. To meet our limitless wants and requirements, we must employ these limited resources that can be put to other uses.If it is impossible to raise the production of one good without decreasing the production of another, the resources have been allocated efficiently.The resources are not being allocated effectively if it is possible to expand the production of both items or of one while maintaining the production of the other.
To know more about production visit:
https://brainly.com/question/14775989
#SPJ4
