Use the figure below to answer the following questions.
Figure 2.1.2
-Refer to the production possibilities frontier in Figure 2.1.2.If 6 units of X are produced, then
A)50 units of Y must be produced, regardless of resource utilization.
B)50 units of Y can be produced if all resources are used and assigned to the task for which they are the best match.
C)60 units of Y can be produced with some resources not fully used.
D)40 units of Y cannot be produced unless production of X is increased.
E)40 units of Y cannot be produced unless production of X is decreased.

Question

Use the figure below to answer the following questions.
  Figure 2.1.2
-Refer to the production possibilities frontier in Figure 2.1.2.If 6 units of X are produced, then
A)50 units of Y must be produced, regardless of resource utilization. 
B)50 units of Y can be produced if all resources are used and assigned to the task for which they are the best match. 
C)60 units of Y can be produced with some resources not fully used. 
D)40 units of Y cannot be produced unless production of X is increased. 
E)40 units of Y cannot be produced unless production of X is decreased.

Quizplus · Accepted Answer

The production possibilities frontier (PPF) illustrates the maximum output combinations of two goods that can be produced given available resources and technology, assuming all resources are fully utilized and efficiently allocated. If 6 units of X are produced, then the maximum units of Y that can be produced (50 units in this case) would be at a point on the PPF where resources are used most efficiently for their best-suited tasks.

Use the Figure Below to Answer the Following Questions