Figure 2-1
-Refer to Figure 2-1.________ is (are)inefficient in that not all resources are being used.

Question

Figure 2-1 
-Refer to Figure 2-1.________ is (are)inefficient in that not all resources are being used.

Quizplus · Accepted Answer

Point A represents a situation where not all resources are being used, therefore it is inefficient. Point B represents a situation where all resources are being fully utilized, but it is not sustainable in the long term as it is beyond the production possibilities frontier. Point C represents a situation where resources are being underutilized and there is potential for growth. Therefore, the best choice is point A, as it represents an inefficient use of resources and there is room for improvement.

Figure 2-1 -Refer to Figure 2-1.________ Is (Are)inefficient in That Not All