Exhibit 2-3
-Which of the following points in Exhibit 2-3 represents an inefficient use of the economy's resources?

Question

Exhibit 2-3  
-Which of the following points in Exhibit 2-3 represents an inefficient use of the economy's resources?

Quizplus · Accepted Answer

Point f represents an inefficient use of resources because it could be producing more of both goods (represented by points on the PPF outside of f), or it could be producing more of one good without sacrificing any of the other good (represented by points on the PPF inside of f). Points g, i, d, and h are all efficient points on the PPF.