Refer to the accompanying figure. Suppose that the government requires that resources be used efficiently. Which of the following would the government definitely not allow?
A)Specialization in warhead production.
B)Specialization in medical care production.
C)Production at any point other than C.
D)Production at point D.

Question

Refer to the accompanying figure. Suppose that the government requires that resources be used efficiently. Which of the following would the government definitely not allow? 
A)Specialization in warhead production. 
B)Specialization in medical care production. 
C)Production at any point other than C. 
D)Production at point D.

Quizplus · Accepted Answer

Point D is inefficient. It lies under the production possibilities curve.

Refer to the Accompanying Figure