Given the production possibilities curve above, which of the following represents a movement from efficiency to inefficiency?

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BlackTom AI · Accepted Answer

First, let's restate what the figure and question are asking: we have a production possibilities curve (PPC) showing efficient points on the curve and inefficient points inside the curve. The question asks which movement represents a shift from efficiency to inefficiency.
Option A: point X to point Z. Point X is on the PPC (efficient), and point Z is also on the PPC (still efficient). Moving from X to Z would stay on the curve, not move inside, so this does not represent a move to inefficiency.
Option B: point X to point W. Point X lies on the PPC (efficient), while point W is inside the curve (inefficient). Moving from X to W represents a decline in possible production combinations and inefficiency, which matches the definition.
Option C: point Y to point Z. Both Y and Z appear to be on the PPC (both efficient) or very close to the curve, so this move would typically stay on or near efficiency, not clearly moving inside. It does not clearly indicate a move to inefficiency.
Option D: point W to point Z. Both W and Z are inside or near the curve, but since Z is on or near the curve and W is inside, this could involve moving toward efficiency rather than away from it. It does not clearly depict a move from efficiency to inefficiency.
Option E: point V to point Y. Both V and Y are outside or above the curve in some diagrams, but in this specific graph V is above and to the right of the curve, and Y is on the curve; moving from V to Y would move toward the PPC and toward efficiency, not away from it.
In summary, the only transition that clearly goes from a point on the PPC (efficient) to a point inside the PPC (inefficient) is X to W, which represents a reduction in attainable output combinations and a loss of efficiency.

AP Economics-Hillebrand AP Microeconomics Sem 1 Exam 2025 - Requires Respondus LockDown Browser

Given the production possibilities curve above, which of the following represents a movement from efficiency to inefficiency?

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