1. Figure 1 illustrates a production possibilities frontier (PPF) for goods X and Y that are traded in perfectly competitive markets, two isovalue lines, CC and C*C*, and two indifference curves, U, and U,,. Figure 1 Quantity of Y Quantity of X 0 1.1 Explain why point A is not an economically efficient allocation of resources. 1.2 Which point represents an economically efficient allocation of resources? Why