All points on the production possibility frontier are:
A)efficient.
B)inefficient.
C)infeasible.
D)economic growth.

Question

Quizplus · Accepted Answer

All points on the production possibility frontier represent the maximum efficient production levels of two goods given the resources and technology available. Thus, only choice A is correct. B is incorrect because inefficient points lie below the production possibility frontier, C is incorrect because infeasible points lie outside the production possibility frontier, and D is incorrect because economic growth would shift the frontier outward, but it would not affect the efficiency of any given point on the frontier.

All Points on the Production Possibility Frontier Are