-Consider the PPF for office buildings and housing shown in the figure above. Which point in the diagram shows that resources to produce office buildings and housing are being misallocated, unused, or both?
A) point F
B) point G
C) point H
D) point I

Question

-Consider the PPF for office buildings and housing shown in the figure above. Which point in the diagram shows that resources to produce office buildings and housing are being misallocated, unused, or both?
A) point F 
B) point G 
C) point H 
D) point I

Quizplus · Accepted Answer

Point A shows that resources are being misallocated, unused, or both. At point A, the economy is not producing on the PPF, meaning that it is not using its resources efficiently.

-Consider the PPF for Office Buildings and Housing Shown in the Figure