In the production possibility frontier in Figure 1-1,which point(s)is (are)infeasible?
A)D,A,and E
B)A and E
C)B and C

Question

In the production possibility frontier in Figure 1-1,which point(s)is (are)infeasible? 
A)D,A,and E 
B)A and E 
C)B and C

Quizplus · Accepted Answer

Points A and E are both infeasible because they lie outside of the production possibilities frontier. Points B and C are all efficient points along the production possibilities frontier, meaning they represent the maximum combination of output that can be produced with the given resources and technology. Point D is also infeasible because it is located inside the production possibilities frontier, which means the economy could produce more of both goods without having to sacrifice any of the other good. Therefore, the best choice is B because it correctly identifies the infeasible points.

In the Production Possibility Frontier in Figure 1-1,which Point(s)is (Are)infeasible