-The figure above shows the production possibilities frontier for a country.If the country is producing at point D,then the
A) resources are being used efficiently.
B) technology associated with producing SUVs and compact cars is advancing.
C) resources are not being used efficiently and/or are unemployed.
D) production of SUVs and compact cars is maximized.
E) None of the above answers are correct because it is not possible to produce at point D.

Question

-The figure above shows the production possibilities frontier for a country.If the country is producing at point D,then the
A) resources are being used efficiently. 
B) technology associated with producing SUVs and compact cars is advancing. 
C) resources are not being used efficiently and/or are unemployed. 
D) production of SUVs and compact cars is maximized. 
E) None of the above answers are correct because it is not possible to produce at point D.

Quizplus · Accepted Answer

The production possibilities frontier (PPF) represents the maximum combination of goods or services that can be produced efficiently with available resources. Point D, being inside the PPF, indicates that not all resources are being used efficiently or some resources are unemployed, as more of at least one good could be produced without sacrificing the production of the other.

-The Figure Above Shows the Production Possibilities Frontier for a Country.If