-In the production possibilities frontier depicted in the figure above, which of the following combinations of hats and bananas is generated by an efficient allocation of resources?
A) 0 pounds of bananas and 6 million hats
B) 3 million pounds of bananas and 4 million hats
C) 2 million pounds of bananas and 5 million hats
D) All of the above combinations are efficient.

Question

-In the production possibilities frontier depicted in the figure above, which of the following combinations of hats and bananas is generated by an efficient allocation of resources?
A) 0 pounds of bananas and 6 million hats 
B) 3 million pounds of bananas and 4 million hats 
C) 2 million pounds of bananas and 5 million hats 
D) All of the above combinations are efficient.

Quizplus · Accepted Answer

All combinations on the production possibilities frontier represent efficient allocations of resources, meaning that the economy is producing at its maximum potential given the available resources.

-In the Production Possibilities Frontier Depicted in the Figure Above