Point D on the PPC is?
Understand the Problem
The question asks us to interpret the 'Point D' on the Production Possibility Curve (PPC). In economics, the PPC is a graph that shows the different combinations of goods that a society or economy can produce efficiently given its available resources and technology. Points inside the curve represent inefficient use of resources.
Answer
Point D on the PPC is inefficient.
The correct answer is b inefficient. A point inside the PPC indicates that resources are not being fully utilized, meaning production is inefficient.
Answer for screen readers
The correct answer is b inefficient. A point inside the PPC indicates that resources are not being fully utilized, meaning production is inefficient.
More Information
Points on the PPC represent efficient use of resources, while points outside the PPC are unattainable with current resources.
Tips
A common mistake is confusing points inside the PPC as efficient; they represent underutilization.
Sources
- Opportunity cost & the production possibilities curve (PPC) (article) - khanacademy.org
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