Asked by Natalia Smart on Apr 29, 2024
Verified
Refer to Figure 2-4, Graph (a) . Production at point Q is
A) possible and efficient.
B) possible but inefficient.
C) impossible but efficient.
D) impossible and inefficient.
Production Possibilities Frontier
A curve depicting the maximum attainable combinations of two products that may be produced with available resources and current technology.
Efficient
Achieving maximum productivity with minimum wasted effort or expense; in economics, an allocation of resources in which it is impossible to make any one individual better off without making someone else worse off.
Inefficient
Refers to a situation where resources are not used in the most effective way, leading to waste or suboptimal outcomes.
- Perceive the significance of the production possibilities frontier (PPF) and its implications.
Verified Answer
AD
Alyson DiamondApr 30, 2024
Final Answer :
B
Explanation :
In the context of a production possibilities frontier (PPF), a point inside the curve (like point Q in Graph (a)) represents a production level that is possible but inefficient. This is because the economy is not utilizing all its resources or technology to its fullest potential, hence it's not operating at maximum efficiency.
Learning Objectives
- Perceive the significance of the production possibilities frontier (PPF) and its implications.