All of the Points Inside a Production Possibilities Frontier Are

question 141

Multiple Choice

All of the points inside a production possibilities frontier are ____; all of the points outside the production possibilities frontier are ____.

• A)efficient; inefficient
• B)optimal; irrational
• C)attainable; unattainable
• D)rational; zero-cost
• E)unattainable; efficient

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Definitions:

Price Floor

A government-imposed minimum price charged on a product, below which that particular product cannot be supplied to the market.

Shortage

A scenario in which the market's need for a service or product surpasses its availability.

Surplus

An excess of production or supply over demand, often leading to lower prices or an inventory accumulation.

Price Ceiling

A government-imposed limit on how high a price is charged for a product, aimed at preventing prices from reaching levels deemed too high.