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Which statement is true?

a. All of the labelled points are attainable.
b. D and E are not attainable.
c. D is attainable but inefficient, E is unattainable.

1 Answer

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Final answer:

The statement 'D is attainable but inefficient, E is unattainable' is likely true as point D represents a combination of two goods that is possible but not efficient, and point E is beyond the economy's current production capabilities.

Step-by-step explanation:

From the information provided, it seems the student's question is related to production possibility frontiers (PPF) or the concept of attainability and efficiency in economics. The given points D and E on a PPF diagram represent different combinations of two goods or services that an economy could produce. The statement that is true must correctly identify whether these points are attainable and efficient based on the provided context.

Point D being attainable but inefficient suggests that while the economy can produce at this point, it is not using all of its resources effectively. This is because there is another point (like point C) where the economy could produce more of both goods and services. On the other hand, point E being unattainable means that with the current resources and technology, the economy cannot produce at this combination of the two goods.

Using the example provided about point R being productively inefficient, we can infer that if point R is inefficient and there is another point such as point C that offers more of both goods (education and healthcare in this case), then point D could similarly be inefficient if point D offers less than what is possible, while point E might be beyond the PPF curve, making it unattainable.

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