Which of the following statements regarding the production possibilities frontier is true?
A) Points on the frontier are less efficient than points inside the frontier.
B) Points outside the frontier are attainable.
C) Points inside the frontier are attainable.
D) None of the above because all of the above statements are false.

Question

Quizplus · Accepted Answer

The statement that points inside the frontier are attainable is true. Points on the frontier represent the most efficient combination of producing two goods with given resources, and points inside the frontier represent less efficient combinations. Points outside the frontier are unattainable given current resources and technology.

Which of the Following Statements Regarding the Production Possibilities Frontier