Question

A point inside the production possibilities frontier is a. efficient but not feasible. b. feasible but not efficient. c. both efficient and feasible. d. neither efficient nor feasible.

Name: Problem 3, Chapter 2: Principles of Microeconomics
Uploaded: 2021-02-25T08:11:40-08:00
Duration: 1 min 34 s
Channel: Wendi Zhao
Description: A point inside the production possibilities frontier is a. efficient but not feasible. b. feasible but not efficient. c. both efficient and feasible. d. neither efficient nor feasible.

   A point inside the production possibilities frontier is
a. efficient but not feasible.
b. feasible but not efficient.
c. both efficient and feasible.
d. neither efficient nor feasible.

Principles of Microeconomics

N. GREGORY MANKIW 8th Edition

Chapter 2, Problem 3

Instant Answer

Solved by Expert Wendi Zhao

02/25/2021

Step 1

The PPF is a graph that shows the different quantities of two goods that an economy can efficiently produce with limited resources. The points on the PPF represent the maximum feasible output of two goods using all available resources efficiently. Show more…

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A point inside the production possibilities frontier is a. efficient but not feasible. b. feasible but not efficient. c. both efficient and feasible. d. neither efficient nor feasible.

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Key Concepts

Feasibility

Feasibility pertains to whether a production level is attainable given existing resources and technology. All points inside or on the PPF are considered feasible, but only those on the frontier represent efficient use of resources.

Efficiency and Inefficiency

Efficiency in production means that an economy is operating on its PPF, using all available resources optimally. A point inside the PPF is inefficient, indicating that resources are underutilized as more of one or both goods could be produced without sacrificing production of the other.

Production Possibilities Frontier (PPF)

The PPF is a curve that illustrates the maximum possible production combinations of two goods or services that an economy can achieve when all resources are fully and efficiently utilized. It highlights the trade-offs and opportunity costs associated with production choices.

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