PPF60405, 1020D206080100CORN (Millions of bushels)Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check allthat apply.PointInefficientEfficientUnattainableABCロ|ロ|0|0|0|0口|口|□|0|□口|ロ|□|0|□|□CARS (Millions)

Answered: PPF 60 40 5, 10 20 F D 20 40 60 100…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

PPF
60
40
5, 10
20
D
20
60
80
100
CORN (Millions of bushels)
Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check all
that apply.
Point
Inefficient
Efficient
Unattainable
A
B
C
ロ|ロ|0|0|0|0
口|口|□|0|□
口|ロ|□|0|□|□
CARS (Millions)

Expert Solution

Step 1

Efficient points indicate all of an economy's inputs being used to their full potential to achieve maximum output. These are the points that are exactly on the curve.

Inefficient points indicate an economy that is not completely utilizing all of its inputs in the production process. This indicates that there are additional resources available that can be employed to increase productivity. Under-utilization can be seen in inefficient points. These points are present within or inside the PPF curve.

Points outside of the PPF that are unattainable owing to a lack of resources are labeled as such. Those points are located outside of the PPF.

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