A point on Joseph's production possibilities curve represents 6 music CDs and 2 videos produced in a week.A combination of 4 music CDs and 2 videos is an
A) efficient and attainable point.
B) efficient but not attainable point.
C) attainable and inefficient point.
D) unattainable point.
E) unattainable and inefficient point.

Question

Quizplus · Accepted Answer

A point on a production possibilities curve represents the maximum output that can be produced from available resources. In this case, the point representing 6 music CDs and 2 videos is efficient because all resources are being used to produce the maximum output. However, a combination of 4 music CDs and 2 videos is not at the maximum level of output and is therefore an inefficient point. However, it is attainable because it is still within the range of available resources.

A Point on Joseph's Production Possibilities Curve Represents 6 Music