O Levels Economics (2281)•2281/12/O/N/18

Explanation
Identifying efficient production on the PPC
Steps:
- Recall that the PPC shows maximum combinations of two goods producible with fixed resources.
- Points on the curve represent efficient production (full resource use).
- Points inside the curve are inefficient (underutilized resources).
- Points outside are unattainable with current resources.
Why C is correct:
- Option C is on the PPC, indicating efficient and attainable production per the definition of opportunity cost and resource allocation.
Why the others are wrong:
- A is inside the curve, showing inefficient production.
- B is outside the curve, unattainable without growth.
- D misinterprets the curve's slope as constant returns.
Final answer: C
Topic: Production possibility curve (PPC) diagrams
Practice more O Levels Economics (2281) questions on mMCQ.me