Consider the production possibilities frontier displayed in the figure shown. Which of the following statements is true?Point A is unattainable.Point B is inefficient.Points A and D are inefficient.Points C and D are attainable.
A) I and II only
B) III only
C) II and IV only
D) IV only

Question

Consider the production possibilities frontier displayed in the figure shown. Which of the following statements is true?Point A is unattainable.Point B is inefficient.Points A and D are inefficient.Points C and D are attainable.
A) I and II only 
B) III only 
C) II and IV only 
D) IV only

Quizplus · Accepted Answer

Point A is outside the production possibilities frontier and thus unattainable. Point B is inside the frontier, indicating inefficiency. Points C and D are both attainable, but Point D is the efficient point because it is on the frontier while Point C is not. Therefore, only IV is true.

Consider the Production Possibilities Frontier Displayed in the Figure Shown