-Consider the PPF for office buildings and housing shown in the figure above.Which point in the diagram shows that resources to produce office buildings and housing are being misallocated,unused,or both?
A) Point F
B) Point G
C) Point H
D) Point I

Question

-Consider the PPF for office buildings and housing shown in the figure above.Which point in the diagram shows that resources to produce office buildings and housing are being misallocated,unused,or both?
A) Point F 
B) Point G 
C) Point H 
D) Point I

Quizplus · Accepted Answer

Point A shows that resources are being misallocated, unused, or both because it is not on the PPF. This means that the economy is not producing at its full potential and could produce more of both goods without sacrificing production of the other.

-Consider the PPF for Office Buildings and Housing Shown in the Figure