Any help would be greatly appreciated. Suppose the United States produces only t

Question

Any help would be greatly appreciated.

Suppose the United States produces only two goods: wheat and digital cameras. The following graph shows the United States’s current production possibilities frontier (also known as the production possibilities curve), along with six output combinations represented by black points (+ symbols) labeled A to F

Complete the following table by indicating whether each point represents output combinations that are productive inefficient, productive efficient, attainable, or unattainable. Check all that apply.

Point

Productive Inefficient

Productive Efficient

Attainable

Unattainable

A

B

C

D

E

F

Explanation / Answer

Solution:

Point

Productive Inefficient: D, C

Productive Efficient: E, F

Attainable: D, C, E, F

Unattainable: B, A

Explanation: The production possibility frontier (PPF) refers to agraph that depicts all maximum output possibilities for two goods that can be produced by an economy, provided a set of inputs consisting of limited available resources. The goods and resources that can be produced by an economy plotted on the production possibilities curve are considered as technically efficient, while the goods and resources that are lying beneath the curve signifies inefficiency

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