-Refer to the above figure. Assume that only two goods can be produced in the economy. Which of the following statements is TRUE?
A) Points a, b, and c are all obtainable points of production.
B) Points a and b are obtainable points of production.
C) Points b and c are obtainable and efficient points of production.
D) Only point b is an obtainable and efficient point of production.

Question

-Refer to the above figure. Assume that only two goods can be produced in the economy. Which of the following statements is TRUE?
A) Points a, b, and c are all obtainable points of production. 
B) Points a and b are obtainable points of production. 
C) Points b and c are obtainable and efficient points of production. 
D) Only point b is an obtainable and efficient point of production.

Quizplus · Accepted Answer

Points b and c are on the production possibility frontier, indicating they are both obtainable and efficient points of production.

-Refer to the Above Figure