All of the points inside a production possibilities frontier are ____; all of the points on the production possibilities frontier are ____.
A)efficient; inefficient
B)inefficient; efficient
C)attainable; unattainable
D)rational; zero-cost
E)unattainable; efficient

Question

Quizplus · Accepted Answer

Points inside the production possibilities frontier represent inefficient use of resources, as the economy could produce more of one or both goods without sacrificing anything. Points on the frontier represent efficient production, where the economy is producing the maximum amount of goods with the resources available.

All of the Points Inside a Production Possibilities Frontier Are