Refer to Figure 1.7.This economy will achieve efficiency in production at
A) Point D only.
B) Point G only.
C) Point J only.
D) Points D, G, and J.

Question

Refer to Figure 1.7.This economy will achieve efficiency in production at
A) Point D only. 
B) Point G only. 
C) Point J only. 
D) Points D, G, and J.

Quizplus · Accepted Answer

Points D, G, and J all lie on the production possibilities frontier, indicating that the economy is producing at maximum efficiency at those points. Any point inside the frontier (such as points A, B, or F) represents a suboptimal use of resources, while any point outside the frontier (such as point M) is currently unattainable with the economy's current level of resources and technology. Therefore, D, G, and J are the only points where the economy achieves efficiency in production.