Considering the production possibilities frontier displayed in the figure shown, producing at point ______ would be inefficient.
A) IV
B) III
C) II
D) I

Question

Considering the production possibilities frontier displayed in the figure shown, producing at point ______ would be inefficient.
A) IV 
B) III 
C) II 
D) I

Quizplus · Accepted Answer

Point III is inefficient because it is inside the production possibilities frontier (PPF). This means that resources are not being fully utilized and output could be increased without sacrificing the production of other goods. Points I, II, and IV are all on the PPF and represent efficient use of resources.

Considering the Production Possibilities Frontier Displayed in the Figure Shown