Which of the following statements is false?
A) If there are only two goods,guns and butter,it is possible to produce more of both goods through economic growth.
B) If there are only two goods,guns and butter,it is possible to produce more of both goods if the economy is currently operating at a productive inefficient point.
C) If there are only two goods,guns and butter,it is possible to produce more of both goods if the economy is currently operating at a productive efficient point.
D) If there are only two goods,guns and butter,producing more of one means producing less of the other if the economy is currently operating at a productive efficient point.

Question

Quizplus · Accepted Answer

If the economy is already operating at a productive efficient point, it means that it is producing the maximum amount of guns and butter using its available resources. However, economic growth means that the economy is able to produce more output using additional resources or an increase in productivity. Therefore, it is possible to produce more of both goods through economic growth. Option A and B are true statements, and option D is also true when the economy is operating at a productive efficient point.

Which of the Following Statements Is False