Some Authors Claim That Any Point Not on the Frontier

question 45

Multiple Choice

Some authors claim that any point not on the frontier cannot be best.What is their 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:

Security Agreement

A legal contract that grants a lender a security interest in an asset or property offered as collateral for a loan.

Assigned

Transferred or allocated to a party or for a specific purpose.

Repossess

The act of taking back goods or property by a seller or lender from the buyer or borrower, usually due to failure to meet the terms of the sale or loan agreement.

Deficit

A financial situation where expenditures exceed revenue.