When comparing point A, which lies within a utilities possibilities frontier, with point B, which lies on the same utilities possibilities frontier,
A) A is necessarily more efficient than B.
B) A is necessarily more equitable than B.
C) B is necessarily more efficient than A.
D) B is necessarily more equitable than A.

Question

Quizplus · Accepted Answer

Points on the utility possibilities frontier represent the most efficient allocation of resources, meaning no one can be made better off without making someone else worse off. Point A, being inside the frontier, indicates a less efficient allocation compared to any point on the frontier, like point B.

When Comparing Point A, Which Lies Within a Utilities Possibilities