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Figure: Production Possibility Frontier Curve for Tealand
-(Figure: Production Possibility Frontier for Tealand) Look at the figure Production Possibility Frontier for Tealand. If Tealand is producing 10 million scones and 10 million cups of tea (point A), we know that the economy:
A)is using its resources efficiently.
B)is using its resources inefficiently.
C)is fully employing its resources.
D)has found new resources.

Question

Use the following to answer questions :
Figure: Production Possibility Frontier Curve for Tealand 
-(Figure: Production Possibility Frontier for Tealand) Look at the figure Production Possibility Frontier for Tealand. If Tealand is producing 10 million scones and 10 million cups of tea (point A), we know that the economy:
A)is using its resources efficiently. 
B)is using its resources inefficiently. 
C)is fully employing its resources. 
D)has found new resources.

Quizplus · Accepted Answer

Point A, where Tealand is producing 10 million scones and 10 million cups of tea, is likely inside the Production Possibility Frontier (PPF), indicating that resources are not being used efficiently.

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