The following figure shows the production possibilities frontier for Good A and

Question

The following figure shows the production possibilities frontier for Good A and Good B. In the figure given below, point g is efficient because Figure 2.2 Good B Good A O the economy can increase the production of both Good A and Good B. it is impossibic to move to any other point along the production possibilities fromtier no other production possibilities frontier exists. it is impossible to move to any other point inside the production possibilities frontier the only way to increase the production of Giood A is to decrease the production of Good B

Explanation / Answer

Ans at option is right. Any point on ppf is efficient. Any point inside it is inefficient as more could be produced by reallocation of resources. Any point outside it is not attainable given technology and resources constraints

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