Exhibit 2-7
-Points inside (below)the production possibilities frontier (PPF)are
A)unattainable.
B)attainable,but productive inefficient.
C)preferable to points that lie on the PPF.
D)attainable and productive efficient.

Question

Exhibit 2-7 
-Points inside (below)the production possibilities frontier (PPF)are
A)unattainable. 
B)attainable,but productive inefficient. 
C)preferable to points that lie on the PPF. 
D)attainable and productive efficient.

Quizplus · Accepted Answer

Points inside (below) the PPF are attainable but productive inefficient, meaning that the economy is not using all of its available resources to produce goods and services. Therefore, choosing a point inside the PPF would result in a lower level of output compared to a point on the PPF.

Exhibit 2-7 -Points Inside (Below)the Production Possibilities Frontier (PPF)are