An Economist Claims That Any Point Not on a Production

question 242

Multiple Choice

An economist claims that any point not on a production possibilities frontier cannot be best.What is his reasoning to support this?

• A)A point inside the frontier implies that society is not facing up to the problem of scarcity.
• B)A point inside the frontier limits growth, and growth is always a goal worth pursuing.
• C)A point inside the frontier represents inflation, and inflation is a dangerous situation.
• D)A point inside the frontier results in fewer goods, and more is always better.
• E)A point inside the frontier is inefficient and represents wasted resources.

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Definitions:

Open System

A system that exchanges both energy and matter with its surroundings, characteristic of most natural and biological systems.

Closed System

A physical system that does not exchange matter with its surroundings, though it may exchange energy.

Penetrating Radiation

Radiation that can penetrate through substances and materials, potentially causing ionization of atoms.

Gamma

A type of high-energy electromagnetic radiation, often associated with nuclear reactions and certain types of radioactive decay.