Exhibit 2-2

-Refer to Exhibit 2-2.If PPF? is the relevant production possibilities frontier,then point __________ illustrates productive inefficiency.
A) A
B) B
C) C
D) J
E) a, b, or c

Question

Exhibit 2-2
 
-Refer to Exhibit 2-2.If PPF? is the relevant production possibilities frontier,then point __________ illustrates productive inefficiency.
A) A 
B) B 
C) C 
D) J 
E) a, b, or c

Quizplus · Accepted Answer

Points A, B, and C are all inside the PPF, which means that the economy is not producing at its full potential. This is known as productive inefficiency.

Exhibit 2-2 -Refer to Exhibit 2-2.If PPF? Is the Relevant Production Possibilities