-The table above lists six points on the production possibilities frontier for grain and cars. From this information you can conclude that production is inefficient if this economy produces
A) 2 tons of grain and 27 cars.
B) 8 tons of grain and 10 cars.
C) 6 tons of grain and 18 cars.
D) 4 tons of grain and 26 cars.

Question

-The table above lists six points on the production possibilities frontier for grain and cars. From this information you can conclude that production is inefficient if this economy produces
A) 2 tons of grain and 27 cars. 
B) 8 tons of grain and 10 cars. 
C) 6 tons of grain and 18 cars. 
D) 4 tons of grain and 26 cars.

Quizplus · Accepted Answer

The production possibilities frontier shows the maximum possible combinations of two goods that can be produced with the given resources and technology. If an economy is producing a combination of goods that is not on the frontier, then it is not using its resources efficiently. In this case, the economy is producing 2 tons of grain and 27 cars, which is not on the frontier. Therefore, the economy is not using its resources efficiently.

-The Table Above Lists Six Points on the Production Possibilities