Multiple Choice
An economist claims that any point not on a production possibilities frontier cannot be best.What is his reasoning to support this?
A) A point inside the frontier implies that society is not facing up to the problem of scarcity.
B) A point inside the frontier limits growth, and growth is always a goal worth pursuing.
C) A point inside the frontier represents inflation, and inflation is a dangerous situation.
D) A point inside the frontier results in fewer goods, and more is always better.
E) A point inside the frontier is inefficient and represents wasted resources.
Correct Answer:
Verified
Correct Answer:
Verified
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