The diagram below shows two production possibilities boundaries for Country X.
FIGURE 1- 4
-Refer to Figure 1- 4.If Country X,constrained by the production possibilities boundary PPB1,is producing the combination of goods indicated at point F,it can produce more consumer goods by moving to one of the points
A)A,B,or C.
B)A,B,C,D,or E.
C)A or E.
D)A or B,but not C.
E)D or E

Question

The diagram below shows two production possibilities boundaries for Country X.
  FIGURE 1- 4
-Refer to Figure 1- 4.If Country X,constrained by the production possibilities boundary PPB1,is producing the combination of goods indicated at point F,it can produce more consumer goods by moving to one of the points
A)A,B,or C. 
B)A,B,C,D,or E. 
C)A or E. 
D)A or B,but not C. 
E)D or E

Quizplus · Accepted Answer

Points A, B, and C all represent combinations of goods that Country X can produce if it shifts resources away from capital goods production towards consumer goods production. These points are all along the production possibility boundary PPB1, so they represent efficient combinations of goods. Moving to any of these points will allow Country X to produce more consumer goods without giving up any capital goods. Points D and E are outside the production possibility boundary PPB1, so moving to these points would require an increase in resources or an increase in productivity. Therefore, points A, B, and C are the best choices for producing more consumer goods given the current constraints.

The Diagram Below Shows Two Production Possibilities Boundaries for Country