The figure below shows the production possibilities frontier for Good A and Good B. In the figure below, which of the following points represents an inefficient use of the economy's resources?

A) h.
B) d.
C) f.
D) i.
E) e.

Question

The figure below shows the production possibilities frontier for Good A and Good B. In the figure below, which of the following points represents an inefficient use of the economy's resources?

A) h. 
B) d. 
C) f. 
D) i. 
E) e.

Quizplus · Accepted Answer

Point C lies inside the production possibility frontier, indicating an inefficient use of resources. The economy can produce more of both goods A and B without sacrificing the production of the other good.

The Figure Below Shows the Production Possibilities Frontier for Good