Consider the production possibilities frontier (PPF) shown in the figure below to answer the questions that follow.

-The set of efficient points is best described as which places on the figure?
A) only area O: points outside the PPF.
B) points on the PPF only.
C) only area I: points inside the PPF.
D) area I: inside the PPF and points on the PPF.
E) area O: outside the PPF and points on the PPF.

Question

Consider the production possibilities frontier (PPF) shown in the figure below to answer the questions that follow.
 
-The set of efficient points is best described as which places on the figure?
A) only area O: points outside the PPF. 
B) points on the PPF only. 
C) only area I: points inside the PPF. 
D) area I: inside the PPF and points on the PPF. 
E) area O: outside the PPF and points on the PPF.

Quizplus · Accepted Answer

Efficient points are those on the Production Possibility Frontier (PPF), where resources are fully utilized without any waste.

Consider the Production Possibilities Frontier (PPF) Shown in the Figure