Use the figure below to answer the following questions.
Figure 2.1.1
-Refer to the production possibilities frontier in Figure 2.1.1.Which one of the following statements is true about point A?
A)It is unattainable.
B)It is preferred to point B.
C)Although no more of good Y can be produced, more of good X can be produced.
D)Although no more of good X can be produced, more of good Y can be produced.
E)Resources are either unused or misallocated or both.

Question

Use the figure below to answer the following questions.
  Figure 2.1.1
-Refer to the production possibilities frontier in Figure 2.1.1.Which one of the following statements is true about point A?
A)It is unattainable. 
B)It is preferred to point B. 
C)Although no more of good Y can be produced, more of good X can be produced. 
D)Although no more of good X can be produced, more of good Y can be produced. 
E)Resources are either unused or misallocated or both.

Quizplus · Accepted Answer

Point A is inside the production possibilities frontier, indicating that resources are not being used efficiently, leading to unused or misallocated resources.

Use the Figure Below to Answer the Following Questions