A point on the frontier of the production possibilities curve is:
A) attainable and the economy is efficient.
B) attainable,but the economy is inefficient.
C) unattainable and the economy is inefficient.
D) unattainable,but the economy is efficient.

Question

Quizplus · Accepted Answer

A point on the frontier of the production possibilities curve represents the maximum possible combination of goods and services that an economy can produce with its limited resources. Therefore, it is attainable, and the economy is efficient because it is producing as much as it possibly can with the given resources.

A Point on the Frontier of the Production Possibilities Curve