Exhibit 2-4 Which of the following points in Exhibit 2-4 represents an inefficient use of the economy's resources?
A)g
B)i
C)f
D)d

Question

Exhibit 2-4  Which of the following points in Exhibit 2-4 represents an inefficient use of the economy's resources?
A)g 
B)i 
C)f 
D)d

Quizplus · Accepted Answer

Point f is the point of maximum efficiency, so any point that is not on the production possibility curve (PPC) or inside it would represent an inefficient use of the economy's resources. Point C lies outside the PPC, indicating that the economy is not producing as much as it potentially could with its limited resources.

Exhibit 2-4 Which of the Following Points in Exhibit