Suppose a country operates on its production possibility frontier when it produces 1000 books and 1000 tables.The combination of ________ reflects ________.
A) 500 books and 1000 tables; an inefficient but attainable point.
B) 1000 books and 500 tables; an efficient point.
C) 1000 books and 1000 tables; a free lunch.
D) 500 books and 500 tables; an attainable and efficient point.
E) 1000 books and 1500 tables; a free lunch.

Question

Quizplus · Accepted Answer

A production possibility frontier (PPF) represents the maximum output combinations of two goods that an economy can achieve using all its resources efficiently. A combination inside the PPF, like 500 books and 1000 tables when it is possible to produce 1000 books and 1000 tables, is attainable but inefficient because it does not use all resources to their fullest potential.

Suppose a Country Operates on Its Production Possibility Frontier When