Exhibit 2-4

-Refer to the exhibit.What does point f represent?

Question

Exhibit 2-4
 
-Refer to the exhibit.What does point f represent?

Quizplus · Accepted Answer

Point f represents an inefficient combination of good A and good B, as there are other points on the production possibilities curve (PPC) that would allow for more units of one or both goods to be produced without sacrificing production of the other. Therefore, the economy could produce more efficiently at points along the PPC. Choice A is incorrect because an efficient combination of goods would fall on the PPC, not outside of it. Choice B is incorrect because the point where the economy will produce depends on the desires and preferences of consumers, as well as the available resources and technology, and cannot be determined from the PPC alone. Choice D is incorrect because there are other unattainable combinations of goods outside of the PPC.

Exhibit 2-4 -Refer to the Exhibit.What Does Point F Represent