Question

We can show economic​ efficiency: A. with points outside the production possibilities frontier. B. with points on and outside the production possibilities frontier. C. with points inside and on the production possibilities frontier. D. with points inside the production possibilities frontier. E. with points on the production possibilities frontier.

Answer 1

Answer:

E. with points on the production possibilities frontier.

Explanation:

An economy is said to be effective if it employs all the available resources adequately well, not under-employing or even over-employing them. Over-employment is shown by points that lie outside the production possibility frontier. Underemployment on the other hand, is shown by points falling inside the production frontier. Therefore, the economic efficiency is shown with points on the production possibilities frontier. The correct answer is E.