Use the following figure to answer the question : Figure 19-1 :
,the curve TT shows how the allocation of a resource affects the well-being of two individuals,Hank and Monica.
-In Figure 19-1,point C:
A)represents the resource allocation where total welfare is minimized.
B)indicates an inefficient allocation of resources.
C)is Pareto optimal.
D)represents an efficient but undesirable allocation of resources.

Question

Use the following figure to answer the question : Figure 19-1 : 
,the curve TT shows how the allocation of a resource affects the well-being of two individuals,Hank and Monica. 
-In Figure 19-1,point C:
A)represents the resource allocation where total welfare is minimized. 
B)indicates an inefficient allocation of resources. 
C)is Pareto optimal. 
D)represents an efficient but undesirable allocation of resources.

Quizplus · Accepted Answer

Point C indicates an inefficient allocation of resources because it does not lie on the production possibility frontier, suggesting that resources could be reallocated to increase the production of one or both goods without reducing the production of the other.

Use the Following Figure to Answer the Question : Figure