-Point C on the production possibilities frontier in the above diagram illustrates
A) a point that achieves production efficiency.
B) a combination of goods and services that cannot be produced efficiently.
C) all goods and services that are desired but cannot be produced due to scarce resources.
D) a production point that has underutilization of resources.

Question

-Point C on the production possibilities frontier in the above diagram illustrates
A) a point that achieves production efficiency. 
B) a combination of goods and services that cannot be produced efficiently. 
C) all goods and services that are desired but cannot be produced due to scarce resources. 
D) a production point that has underutilization of resources.

Quizplus · Accepted Answer

Point C on the production possibilities frontier (PPF) represents a point of production efficiency, where an economy is producing at its maximum potential given its resources and technology, without wasting resources or having the capacity to produce more of one good without producing less of another.

-Point C on the Production Possibilities Frontier in the Above