A point on the frontier of the production possibilities curve is:
A) attainable and the economy is efficient.
B) attainable, but the economy is inefficient.
C) unattainable and the economy is inefficient.
D) unattainable, but the economy is efficient.

Question

Quizplus · Accepted Answer

A point on the frontier of the production possibilities curve represents an efficient allocation of resources, meaning the economy is operating at its full potential and all resources are being used optimally.

A Point on the Frontier of the Production Possibilities Curve