Exhibit 2.2

-Refer to Exhibit 2.2, which shows the production possibilities frontier for Good A and Good B. Which of the following points represents an inefficient use of the economy's resources?

Question

Exhibit 2.2
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-Refer to Exhibit 2.2, which shows the production possibilities frontier for Good A and Good B. Which of the following points represents an inefficient use of the economy's resources?

Quizplus · Accepted Answer

Point C lies inside the production possibilities frontier, indicating that the economy is producing less than it could with its available resources. This represents an inefficient use of the economy's resources. Points A, B, D, and E are all on the production possibilities frontier or outside it, indicating efficient or unattainable levels of production.

Exhibit 2.2 ​

Exhibit 2.2