4. Among the feasible points shown on this graph, we can't be certain that any would be preferred to B. If any feasible points were located within the shaded area shown to the right we could be certain that these would be preferred to B.

Even though B represents an inefficient utilization of resources, and points A, C and D all represent efficient utilization, moving from B to any of these points requires that something be given up. For example, to move from B to A requires that the society produce fewer cars. Without knowing more about this country's needs and preferences, we can't be sure this would be better. This could be a tiny island whose entire economy is based on fishing. Likewise, moving from B to C or D requires giving up boats and again, without more information we can't be certain this is better.

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