A point on the frontier of the production possibilities curve is:
A)attainable and the economy is efficient.
B)attainable, but the economy is inefficient.
C)unattainable, but the economy is inefficient.
D)unattainable and the economy is efficient.

Question

Quizplus · Accepted Answer

A point on the frontier of the production possibilities curve indicates that the economy is currently producing at its maximum possible output with its given resources and technology. As such, it is attainable and the economy is operating at maximum efficiency.

A Point on the Frontier of the Production Possibilities Curve