-Refer to Exhibit 2-7.Point F is A) unattainable if the economy's PPF is PPF₁. B) inefficient if the economy's PPF is PPF₂. C) attainable if the economy's PPF is PPF₂. D) all of the above E) none of the above

Question

Quizplus · Accepted Answer

Point F is unattainable with the given PPF because it lies outside the curve, indicating that the economy cannot produce at that level with its current resources and technology. It is inefficient if the economy's PPF allows for its attainment because it implies resources are not being used to their full potential. Lastly, it is attainable if the PPF shifts or is initially positioned to include point F, indicating the economy can produce at that level. Thus, all statements are correct depending on the position and shape of the PPF.

-Refer to Exhibit 2-7.Point F Is