Refer to the information provided in Figure 2.1 below for the economy of Macroland to answer the question(s) that follow. Figure 2.1
-Refer to Figure 2.1. Macroland is currently operating at Point A. The best explanation for this is that
A) the economy has very poor technology.
B) the economy's resources are being used inefficiently.
C) the economy has very few resources.
D) the economy operates as an efficient market.

Question

Refer to the information provided in Figure 2.1 below for the economy of Macroland to answer the question(s) that follow.  Figure 2.1
-Refer to Figure 2.1. Macroland is currently operating at Point A. The best explanation for this is that
A) the economy has very poor technology. 
B) the economy's resources are being used inefficiently. 
C) the economy has very few resources. 
D) the economy operates as an efficient market.

Quizplus · Accepted Answer

Point A, located inside the production possibilities frontier, indicates that not all resources are being used efficiently or to their full potential. This does not necessarily reflect on the quality of technology, the quantity of resources, or the efficiency of the market itself, but rather on the current use of resources.

Refer to the Information Provided in Figure 2