Questions: 14 of 40 Concepts completed Multiple Choice Question Combinations inside the production possibilities frontier are: impossible and inefficient. impossible but efficient. possible and efficient. possible but inefficient.

The answer is the last one: possible but inefficient.

Explanation for each option:

1. Impossible and inefficient: This is incorrect because combinations inside the production possibilities frontier (PPF) are not impossible. They are possible but not utilizing all available resources efficiently.

2. Impossible but efficient: This is incorrect because combinations inside the PPF are possible, not impossible. Efficiency refers to using resources in a way that maximizes output, which is not the case for points inside the PPF.

3. Possible and efficient: This is incorrect because while combinations inside the PPF are possible, they are not efficient. Efficiency is achieved when production is on the PPF, not inside it.

4. Possible but inefficient: This is correct. Combinations inside the PPF are possible because they represent attainable production levels given the resources. However, they are inefficient because they do not use all available resources to their full potential, meaning more of one or both goods could be produced without sacrificing the production of the other.

In summary, combinations inside the production possibilities frontier are possible but inefficient.