Figure 2-4
Graph (a)
Graph (b)

-Refer to Figure 2-4, Graph (a). Production at point Q is
A)possible and efficient.
B)possible but inefficient.
C)impossible but efficient.
D)impossible and inefficient.

Question

Figure 2-4
Graph (a)
Graph (b)
  
-Refer to Figure 2-4, Graph (a). Production at point Q is
A)possible and efficient. 
B)possible but inefficient. 
C)impossible but efficient. 
D)impossible and inefficient.

Quizplus · Accepted Answer

In the context of a production possibilities frontier (PPF), a point inside the curve (like point Q in Graph (a)) represents a production level that is possible but inefficient. This is because the economy is not utilizing all its resources or technology to its fullest potential, hence it's not operating at maximum efficiency.