-The table above lists six points on the production possibilities frontier for grain and cars. From this information you can conclude that production is inefficient if this economy produces
A) 6 tons of grain and 18 cars.
B) 4 tons of grain and 26 cars.
C) 2 tons of grain and 27 cars.
D) 8 tons of grain and 10 cars.

Question

-The table above lists six points on the production possibilities frontier for grain and cars. From this information you can conclude that production is inefficient if this economy produces
A) 6 tons of grain and 18 cars. 
B) 4 tons of grain and 26 cars. 
C) 2 tons of grain and 27 cars. 
D) 8 tons of grain and 10 cars.

Quizplus · Accepted Answer

Production is inefficient if the economy is producing less than it could with the resources available. Choice C represents a point inside the production possibilities frontier, indicating inefficiency, as more of both goods could be produced with the available resources.

-The Table Above Lists Six Points on the Production Possibilities