Suppose Bulgaria produces only two goods barley and digital

Suppose Bulgaria produces only two goods: barley and digital cameras. The following graph shows Bulgaria\'s current production possibilities frontier, along with six output combinations represented by black points (plus symbols) labeled A to F 2 0 6 0 100 PPF 60 O 40 40 60 80 100 BARLEY (Millions of bushels)

Solution

All points outside PPF are unattainable because the economy don\'t have enough resources to reach that production level.

All points on the PPF is efficient and attainable. It\'s efficient because of efficient use of the available resources and that much goods and services only can be produced by the full utilisation of the resources.

All points inside the PPF is inefficient and attainable. It\'s inefficient because of not using the resources completely. It\'s attainable because enough resources are there to get that level of output.

As per the diagram above

Point A

Inefficient and attainable
Point B
Unattainable

Point C

Unattainable

Point D

Efficient and attainable

Point E

Efficient and attainable

Point F

Inefficient and attainable