The figure depicts a shift in a society's production possibilities frontier (PPF)for the manufacture of trains and planes: train-manufacturing capacity expands while plane-manufacturing capacity shrinks. Refer to this figure to answer the following questions.

-Which point represents a new production possibility?
A) point A
B) point B
C) point C
D) point D
E) point E

Question

The figure depicts a shift in a society's production possibilities frontier (PPF) for the manufacture of trains and planes: train-manufacturing capacity expands while plane-manufacturing capacity shrinks. Refer to this figure to answer the following questions.

-Which point represents a new production possibility?

-Which point represents a new production possibility?
A) point A 
B) point B 
C) point C 
D) point D 
E) point E

Quizplus · Accepted Answer

Point E represents a new production possibility because it is not on the original production possibility frontier, indicating a change in resources or technology.

The Figure Depicts a Shift in a Society's Production Possibilities