Multiple Choice
Refer to Figure 3-3. A change from point A to point E on the production possibilities frontier represents a(n):
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2. Introductory Economic Models
Production Possibilities Frontier (PPF) - Introduction and Productive Efficiency
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
According to the production possibilities frontier (PPF) graph, at which of the following points is production unsustainable?
A
A point on the PPF curve
B
A point outside the PPF curve
C
A point at the origin
D
A point inside the PPF curve
Verified step by step guidance1
Understand what the Production Possibilities Frontier (PPF) represents: it shows the maximum possible output combinations of two goods that an economy can produce using all available resources efficiently.
Recognize that any point on the PPF curve represents efficient production, where resources are fully utilized without waste.
Identify that any point inside the PPF curve indicates inefficient production, meaning some resources are underutilized or wasted, but production is still sustainable.
Note that a point at the origin means no production is happening, which is sustainable but not efficient or desirable.
Understand that a point outside the PPF curve represents a level of production that is currently unattainable or unsustainable given the available resources and technology.
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Production Possibilities Frontier (PPF) - Introduction and Productive Efficiency practice set
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