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-(Figure: Consumer and Capital Goods)Use Figure: Consumer and Capital Goods.Assume the economy's current production possibilities frontier is given by curve 1.Point Z:
A)is unattainable,all other things unchanged.
B)is attainable if the economy is able to reach full employment.
C)is attainable if the quantity and/or quality of factors decreases.
D)will be attained as soon as the economy becomes efficient and moves to curve 2.

Question

Use the following to answer question:

-(Figure: Consumer and Capital Goods)Use Figure: Consumer and Capital Goods.Assume the economy's current production possibilities frontier is given by curve 1.Point Z:
A)is unattainable,all other things unchanged. 
B)is attainable if the economy is able to reach full employment. 
C)is attainable if the quantity and/or quality of factors decreases. 
D)will be attained as soon as the economy becomes efficient and moves to curve 2.

Quizplus · Accepted Answer

Point Z lies outside the production possibilities frontier (PPF) and therefore is unattainable given the current level of resources and technology.

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