An economist claims that any point not on a production possibilities frontier cannot be best.What is his reasoning to support this?
A)A point inside the frontier implies that society is not facing up to the problem of scarcity.
B)A point inside the frontier limits growth, and growth is always a goal worth pursuing.
C)A point inside the frontier represents inflation, and inflation is a dangerous situation.
D)A point inside the frontier results in fewer goods, and more is always better.
E)A point inside the frontier is inefficient and represents wasted resources.

Question

Quizplus · Accepted Answer

The reasoning behind the claim that any point not on a production possibilities frontier cannot be best is that a point inside the frontier is inefficient and represents a waste of resources. This means that society is not utilizing all of its resources to their fullest potential and is therefore not achieving the maximum level of output possible with those resources. Therefore, any point not on the frontier, whether it be inside or outside, cannot be optimal or the best choice.

An Economist Claims That Any Point Not on a Production