Question

On a production possibilities curve, a change from economic inefficiency to economic efficiency is obtained by a) movement along the curve b) movement from a point outside the curve to a point on the curve c) movement from a point inside the curve to a point on the curve d) a change in the slope of the curve

Answer 1

Answer:

c) movement from a point inside the curve to a point on the curve.

Explanation:

Option C is correct because the production possibilities curve shows the combination of goods produced by the economy efficiently and any point inside the curve shows the inefficiency of the economy while the point outside the curve shows that the economy can not achieve it. Therefore, change in economic inefficiency to efficiency leads to move point from inside to the point on the curve.