An inefficient outcome on the production possibilities frontier might be characterised by:

Question

Quizplus · Accepted Answer

An inefficient outcome on the production possibilities frontier means that resources are not being used to their fullest potential. This could result in unemployment, as there are resources (such as labor) that are not being utilized. Therefore, Option B is the correct choice. Option A (equity) is not necessarily a characteristic of an inefficient outcome on the production possibilities frontier, as equity is more related to the distribution of resources rather than their efficient use. Option C (increased output) is not an inefficient outcome, as it implies a movement outwards from the production possibilities frontier. Option D (a reduction in the production of computers) is not necessarily an inefficient outcome, as a reduction in production could be a deliberate choice based on consumer demand or resource availability.

An Inefficient Outcome on the Production Possibilities Frontier Might Be