Figure 6.3.1
-Look at the macro production possibilities frontier in Figure 6.3.1. Which point(s) represent fully employed inputs?
A) a only
B) b only
C) a, b, c
D) d only
E) e only

Question

Figure 6.3.1 
-Look at the macro production possibilities frontier in Figure 6.3.1. Which point(s) represent fully employed inputs?
A) a only 
B) b only 
C) a, b, c 
D) d only 
E) e only

Quizplus · Accepted Answer

Points a, b, and c are all on the production possibilities frontier, indicating that they are all combinations of goods that can be produced using fully employed inputs. Points d and e are inside the frontier, indicating that not all inputs are fully employed. Therefore, the best choice(s) would be any combination of goods along the production possibilities frontier, such as a or b or c.

Figure 6.3.1 -Look at the Macro Production Possibilities Frontier in Figure 6.3.1