Which of the following statements is true?
A) An unattainable point is inefficient.
B) An efficient point may or may not be attainable.
C) An inefficient point must be unattainable.
D) An efficient point must be attainable.
E) An attainable point must be efficient.

Question

Quizplus · Accepted Answer

An efficient point is a point at which no more of one good can be obtained without giving up some of another good. Such a point must be attainable, as it represents a combination of goods that can be produced given the available resources. An inefficient point, on the other hand, represents a combination of goods that could be improved upon, and may or may not be attainable depending on the constraints of the economy. A point that is unattainable is outside of the production possibilities frontier, and is not considered efficient or inefficient. An attainable point may or may not be efficient, as it depends on whether it lies on the production possibilities frontier or inside the frontier.

Which of the Following Statements Is True