Points on the production possibilities frontier are ?
Correct answer: D. efficient
- A. inefficient
- B. normative
- C. unattainable
- D. efficient
Explanation
Every point on the production possibilities frontier represents productive efficiency because available resources are fully and efficiently used. Points inside are inefficient, while points outside are unattainable with current resources and technology.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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