Consider a passenger car that goes 0-60mph in 20 seconds and burns 10mpg. You would expect a 10mpg car to accelerate on par with a Ferrari, or a slow car to use much less fuel. In a sense of "2. One exhibiting inexplicable or contradictory aspects", if such a gas-guzzler VW bug was ubiquitous it would be a paradox. Not a contradiction, but certainly quite inexplicable.
If the inefficient and underpowered car is the only one available, it's still a relatively good transportation option: for long distances, it is much better than traveling on foot. Even if this car is a worldwide standard, someone can still design, build and successfully market a Prius—providing a better choice in almost every respect and, in effect, solving the paradox.