The diagram below shows two production possibilities boundaries for Country X.
FIGURE 1- 4
-Refer to Figure 1- 4.Suppose that Country X is currently producing at point E.Country X could achieve production at point D if
A)firms reduced output of capital goods.
B)the given resources were fully employed.
C)sufficient improvements in technology occurred in either the capital goods industry or the consumer goods industries.
D)the given resources were more efficiently employed.
E)the prices of capital goods and consumption goods fell.

Question

The diagram below shows two production possibilities boundaries for Country X.
  FIGURE 1- 4
-Refer to Figure 1- 4.Suppose that Country X is currently producing at point E.Country X could achieve production at point D if
A)firms reduced output of capital goods. 
B)the given resources were fully employed. 
C)sufficient improvements in technology occurred in either the capital goods industry or the consumer goods industries. 
D)the given resources were more efficiently employed. 
E)the prices of capital goods and consumption goods fell.

Quizplus · Accepted Answer

Point D represents a higher level of production efficiency than point E. This could be achieved by improvements in technology in either the capital goods industry or the consumer goods industry, leading to more efficient use of resources and an increase in overall production levels.

The Diagram Below Shows Two Production Possibilities Boundaries for Country