An Economy Producing at the Wrong Point on Its Production

An economy producing at the wrong point on its production possibility frontier is ___.

A) efficient, because it is on the production possibility frontier.
B) inefficient, because the combination of goods and services produced is not what people want.
C) efficient, because the economy is producing goods at the lowest possible cost.
D) inefficient, because that combination of goods could be produced at a lower cost if more efficient technology were employed.

Correct Answer:

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