In the above figure, points u, v, y, and z show
A) an inefficient allocation of society's scarce resources.
B) possible combinations of televisions and personal computers.
C) a constant trade-off between televisions and personal computers.
D) that society prefers more televisions than computers.

Question

Quizplus · Accepted Answer

The points u, v, y, and z represent possible combinations of televisions and personal computers. Therefore, the best choice(s) would be any point on the production possibility frontier (PPF) as they represent the most efficient use of society's resources. Points inside the PPF (such as u and v) indicate an inefficient use of resources, and points outside the PPF (such as y and z) are currently unattainable given the economy's resources and technology.

In the Above Figure, Points U, V, Y, and Z