ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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They are being over efficient
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They are not efficient
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It is impossible
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None of the above
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Detailed explanation-1: -If a point lies on the curve this means the company/country/individual is being efficient. If a point lies inside the curve, what does that tell? a. There is an idle, or unproductive, use of resources.
Detailed explanation-2: -If a point falls inside the production possibility curve it means either the resources are under utilised or there is unemployment in the economy.
Detailed explanation-3: -Answer and Explanation: Inefficient: any point inside and to the left of the PPC curve is inefficient. This is because the economy is not producing at full employment and efficiency, and can improve itself. Efficient: any point on the PPC is efficient.
Detailed explanation-4: -Inefficient production implies that the economy could be producing more goods without using any additional labor, capital, or natural resources.
Detailed explanation-5: -Point X represents an inefficient use of resources, while point Y represents a goal that the economy simply cannot attain with its present levels of resources.