Refer to the figure below. Suppose that the government requires that resources be used efficiently. Which of the following would the government definitely not allow?
A) Specialization in warhead production.
B) Specialization in medical care production.
C) Production at any point other than C.
D) Production at point D.

Question

Refer to the figure below. Suppose that the government requires that resources be used efficiently. Which of the following would the government definitely not allow?  
A) Specialization in warhead production. 
B) Specialization in medical care production. 
C) Production at any point other than C. 
D) Production at point D.

Quizplus · Accepted Answer

Point D represents a combination of goods that is not feasible with the given resources. Therefore, producing at point D is not efficient and the government would not allow it if they require resources to be used efficiently.

Refer to the Figure Below