Exhibit 2-15 Production possibilities curve

In Exhibit 2-15, the economy will experience the most future economic growth if it chooses what point now?

Question

Exhibit 2-15 Production possibilities curve

In Exhibit 2-15, the economy will experience the most future economic growth if it chooses what point now?

Quizplus · Accepted Answer

Point N represents a combination of goods that is currently not being produced but is still achievable with the available resources. Choosing to produce at point N would result in the most future economic growth as it represents an increase in the total output of goods and services that the economy can produce. Points J, K, and M are all within the production possibilities frontier, meaning that they represent combinations of goods that the economy is currently producing. Choosing to produce at any of these points would result in a reallocation of resources but would not lead to an increase in the total output of goods and services. Therefore, point N is the best choice.

Exhibit 2-15 Production Possibilities Curve