The figure below shows the production possibilities frontier for Good A and Good B.In the figure below,which of the following points represents an inefficient use of the economy's resources?

A)h.
B)d.
C)f.
D)i.
E)e.

Question

The figure below shows the production possibilities frontier for Good A and Good B.In the figure below,which of the following points represents an inefficient use of the economy's resources?

A)h. 
B)d. 
C)f. 
D)i. 
E)e.

Quizplus · Accepted Answer

Point f is inside the production possibilities frontier, which means the economy is not using all of its resources efficiently. To achieve point f, the economy would have to reduce production of one of the goods and increase production of the other. Therefore, point f represents an inefficient use of the economy's resources.

The Figure Below Shows the Production Possibilities Frontier for Good