What does the concept of 'full-production' mean in economics?

The concept of 'full-production' in economics refers to the situation where all resources are being utilized to their fullest potential. This implies that all available labor, capital, and natural resources are employed efficiently and effectively, producing goods and services at maximum capacity without any waste. Under full production, the economy operates on its production possibilities frontier, signifying that it is achieving the highest possible output with the given resources.

Full production does not merely mean all resources are employed; it also encompasses the optimal use of those resources, meaning they are allocated to produce the goods and services that society values most. When an economy is at full production, it can achieve a high level of economic efficiency, contributing to overall economic growth and well-being.

Government interventions, profit levels, and market equilibrium are important concepts in economics, but they do not directly define the essence of full production. Thus, the correct understanding of full production hinges on the maximization of resource use – the heart of option A.