Use the figure below to answer the following questions. Figure 2.1.3
-Figure 2.1.3 illustrates Mary's production possibilities frontier.If Mary wants to move from point B to point C,Mary must
A)improve technology.
B)increase capital.
C)give up some of good X to obtain more of good Y.
D)give up some of good Y to obtain more of good X.
E)pay more for her factors of production.

Question

Use the figure below to answer the following questions.  Figure 2.1.3
-Figure 2.1.3 illustrates Mary's production possibilities frontier.If Mary wants to move from point B to point C,Mary must
A)improve technology. 
B)increase capital. 
C)give up some of good X to obtain more of good Y. 
D)give up some of good Y to obtain more of good X. 
E)pay more for her factors of production.

Quizplus · Accepted Answer

Moving from point B to point C means Mary wants to obtain more of good X by giving up some of good Y. This means she must move along the production possibilities frontier, which represents the trade-off between producing one good and the other. Therefore, the correct answer is D - give up some of good Y to obtain more of good X.

Use the Figure Below to Answer the Following Questions