We can show economic inefficiency: A. with points inside the production possibilities frontier. B. with points on and outside the production possibilities frontier. C. with points on the production possibilities frontier. D. with points outside the production possibilities frontier. E. with points inside and on the production possibilities frontier.

The **Production Possibilities Frontier (PPF)** illustrates the maximum combinations of two goods that an economy can produce using all available resources efficiently. Here's a breakdown of the options: - **Points on the PPF**: Represent **efficient** use of resources. The economy is producing at its maximum potential. - **Points inside the PPF**: Indicate **inefficiency**. Resources are not being used to their full potential, leading to underproduction of goods. - **Points outside the PPF**: Are **infeasible** with the current resource constraints. They represent levels of production that cannot be achieved unless there is economic growth or an increase in resources. Given this understanding: - **Option A**: **With points inside the production possibilities frontier.** This accurately represents economic inefficiency since it shows that resources are not being fully utilized. - **Options B, C, D, and E**: These either include points that are efficient (on the PPF) or infeasible (outside the PPF), which do not solely represent inefficiency. **Therefore, the correct answer is:** **A. with points inside the production possibilities frontier.**