Answer to Question #272440 in Microeconomics for Lizzie

Question

Use the production possibility curve (PPC) to answer the question. If Zambia is currently on PPC1,

then point-------------will be an efficient use of resources, while point------------will be unattainable.

Answer 1

Solution:

The correct answer is option D.). d, and c.

 

The Production Possibilities Curve, also known as the Production Possibilities Frontier, is a graph that depicts the maximum number of possible units a company can produce if it only produces two products while efficiently utilizing all of its resources.

An efficient point is one that lies on the production possibilities curve. At any such point, more of one good can be produced only by producing less of the other.

Points on the PPC's interior are inefficient, points on the PPC's exterior are efficient, and points beyond the PPC are unattainable.

Therefore, both points B and D are efficient points but point D is more efficient than point B. On the other hand, points E, F and C are unattainable since they lie beyond the PPC.