BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The combination of goods that employ goods efficiently
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The combination of goods that employ resources fully
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The combination of goods that do not employ resources fully
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Detailed explanation-1: -So if an economy operates inside the PPF, then it indicates that the firm is not utilizing the supplied resources and technology efficiently. Was this answer helpful?
Detailed explanation-2: -Points that lie on the PPF illustrate combinations of output that are productively efficient.
Detailed explanation-3: -Which point on the PPF does not represent an efficient combination of production for goods A and B? Any point inside the PPF is inefficient because more of either or both goods could be produced with the same set of resources. Any point inside the PPF is attainable, but not efficient.
Detailed explanation-4: -Points outside the production possibilities frontier represent infeasible levels of production.