Foundations of Economics, Student Value Edition (8th Edition)
8th Edition
ISBN: 9780134489230
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 3, Problem 1SPPA
To determine
Graphical Representation of
Expert Solution & Answer
Explanation of Solution
Inefficient points are those in which resources are not fully utilized or are wasted. Economy is producing output inside Production possibility curve. Point A is inefficient as 300 pounds of beef and 100 bushel of corn is produced. At this point, resources are wasted.
Unattainable combinations are such which lie outside PPF curve. These are the combination of output production which cannot be produced as resources are not available for such combination. Point B in unattainable point in the above figure.
Efficient Point: Production is said to be efficient at which an economy can produce maximum output using its existing resources. There is no scope of increasing production, only alteration can be done. Resources are fully employed and attainable. Point C is efficient point.
Economics Concept Introduction
Concept Introduction:
Production efficiency is the level of optimum level at which am economy can produce maximum output using its existing resources. There is no scope of increasing production, only alteration can be done.
An inefficient output is one in which more output of one good is produced without reducing the other good's output.
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Chapter 3 Solutions
Foundations of Economics, Student Value Edition (8th Edition)
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