Multiple Choice
(Figure: PPF of Econia (a small nation) ) Looking at the production possibilities frontier (PPF) of Econia, assume that the country is producing at point D. All of the 300 bales of wheat are eaten but some people remain hungry. Over 100 of the 520 bales of cotton remain unused. Which statement is correct regarding efficiency in Econia?
A) Econia is producing wheat and cotton in amounts that are as efficient as possible.
B) Econia would have greater production efficiency if it moved from D to B.
C) Econia is neither productively nor technically efficient.
D) Econia would have greater allocative efficiency if it moved from D to B.
Correct Answer:

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Correct Answer:
Verified
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