In the above figure, the combination of personal computers and televisions shown by point w
A) is an efficient use of society's resources because it is below the production possibilities curve.
B) is more desirable than point x because producing at point w does not put a strain on society's resources.
C) is attainable but involves the inefficient use of some of society's resources.
D) is beyond the capacity of society to produce.

Question

Quizplus · Accepted Answer

Point w is attainable, but it involves the inefficient use of some of society's resources as it is inside the production possibilities curve. Therefore, the economy can produce more of both personal computers and televisions without using any additional resources, making point w less desirable than points on the curve.

In the Above Figure, the Combination of Personal Computers and Televisions