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Question

Use the figure to answer question.
Which point on the Production Possibilities Curve show full and efficient use of resources?
837948_f4f32e45bf84465c9142966637416948.png

A
A
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B
B
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C
C
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D
All the above
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Solution

The correct option is D All the above
The points on the Production Possibilities Curve that show full and efficient use of resources are A, B, C. This is because they lie on the PPC, which means that all the resources are being used to their full capacity. However, point E is unattainable with the given level of resources and point P signifies the inefficient utilization of resources.

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