17
QuizMultiple Choice

Opportunity Cost

Question 17 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27

On a production possibility curve, data points that fall outside of the curve represent

Answer
a
an inefficient allocation of resources.
a
a balanced allocation of resources.
i
ideal production.
a
a currently unattainable production.

Explanation

A production possibility curve shows the maximum combinations of goods an economy can produce with its current resources and technology. Points outside the curve require more resources or better technology than are currently available, so they represent currently unattainable production. Points inside the curve, by contrast, indicate inefficient use of resources.

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