What happens if a country produces a combination of goods that efficiently uses all of the resources available in the economy? .. A. The country is maximizing its opportunity cost. B. The country has eliminated scarcity. C. The country is operating on its production possibilities frontier. D. All of the above occur if a country uses all available resources. of 1 A.

When a country operates on its production possibilities frontier (PPF), it signifies that the economy is utilizing all available resources efficiently to produce the maximum combination of goods. At this point, any attempt to produce more of one good would require sacrificing some quantity of another good—illustrating the concept of opportunity cost. However, reaching this efficient production level does not eliminate scarcity. Scarcity is a fundamental economic problem stemming from limited resources and unlimited wants. Even when resources are fully utilized, there will always be trade-offs and choices to make, keeping scarcity very much alive in any economy!