-In the production possibilities frontier depicted in the figure above, which of the following combinations of hats and bananas is inefficient?
A) 4 million pounds of bananas and 4 million hats
B) 2 million pounds of bananas and 5 million hats
C) 0 pounds of bananas and 6 million hats
D) 1 million pounds of bananas and 3 million hats

Question

-In the production possibilities frontier depicted in the figure above, which of the following combinations of hats and bananas is inefficient?
A) 4 million pounds of bananas and 4 million hats 
B) 2 million pounds of bananas and 5 million hats 
C) 0 pounds of bananas and 6 million hats 
D) 1 million pounds of bananas and 3 million hats

Quizplus · Accepted Answer

An inefficient point in the context of a production possibilities frontier (PPF) is one that lies inside the PPF curve, indicating that resources are not being used to their fullest potential. Choice D represents such a point, as more of at least one good could be produced without sacrificing the production of the other, given the resources available.

-In the Production Possibilities Frontier Depicted in the Figure Above