Question: Which points are efficient and which points are inefficient? Explain why. Figure 1 shows an economys PPF and identifies some production points. Use this figure

Which points are efficient and which points are inefficient? Explain why.

Figure 1 shows an economy’s PPF and identifies some production points. Use this figure to work Problems 2 to 4.

Figure 1

FIGURE 1 Cars (thousands per week) 60 50 40 30 20 10

FIGURE 1 Cars (thousands per week) 60 50 40 30 20 10 0 + 2 A D F B E 6 G 8 PPF 10

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