Use the following to answer questions:
Figure: PPF Goods X & Y
-(Figure: PPF Goods X & Y) Refer to the figure. Point A represents an allocation of resources that is:
A) efficient.
B) inefficient.
C) impossible.
D) the result of trade.

Question

Use the following to answer questions:
Figure: PPF Goods X & Y 
-(Figure: PPF Goods X & Y) Refer to the figure. Point A represents an allocation of resources that is:
A) efficient. 
B) inefficient. 
C) impossible. 
D) the result of trade.

Quizplus · Accepted Answer

Point A is inside the production possibility frontier (PPF), indicating that resources are not being used to their full potential, hence it is inefficient.

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