On a production possibilities diagram, points inside the frontier are:
A)unattainable given existing technology and resources.
B)inefficient.
C)efficient.
D)efficient but not necessarily desirable.

Question

On a production possibilities diagram, points inside the frontier are:
A)​unattainable given existing technology and resources.
B)​inefficient.
C)​efficient.
D)​efficient but not necessarily desirable.

Quizplus · Accepted Answer

Points inside the frontier are inefficient, meaning that resources are not being used to their full potential. These points represent a situation where a country is producing less than it could with existing resources and technology.

On a Production Possibilities Diagram, Points Inside the Frontier Are