-Refer to the above figure. Which of the following statements is TRUE?
A) Point a is efficient, Point b is efficient, point c is inefficient.
B) Point a is unobtainable, point b is efficient and point c is inefficient.
C) Point a is inefficient, point b is efficient and point c is unobtainable.
D) All of the points are efficient.

Question

-Refer to the above figure. Which of the following statements is TRUE?
A) Point a is efficient, Point b is efficient, point c is inefficient. 
B) Point a is unobtainable, point b is efficient and point c is inefficient. 
C) Point a is inefficient, point b is efficient and point c is unobtainable. 
D) All of the points are efficient.

Quizplus · Accepted Answer

Point a is inside the production possibility frontier (PPF), indicating inefficiency. Point b is on the PPF, indicating efficiency. Point c is outside the PPF, indicating it is unobtainable with current resources.

-Refer to the Above Figure