Points inside (below)the production possibilities frontier (PPF)are
A) unattainable.
B) attainable and productive inefficient.
C) preferable to points that lie on the PPF.
D) attainable and productive efficient.

Question

Quizplus · Accepted Answer

Points inside (below) the PPF are attainable but not productive efficient because resources are not being utilized to their full potential, resulting in a lower output of goods and services. Points on the PPF represent maximum possible output with given resources and technology. Therefore, points inside the PPF are not preferable to points on the PPF.

Points Inside (Below)the Production Possibilities Frontier (PPF)are