Figure 2.1.2
-Consider the production possibilities frontier in Figure 2.1.2.Which of the following statements is false?
A)Points inside the production possibilities frontier indicate wasted or misallocated resources.
B)The opportunity cost of producing X increases as production of X increases.
C)The opportunity cost of producing Y increases as production of Y increases.
D)Resources are not equally useful in the production of X and Y.
E)Production at point A shifts the production possibilities frontier outward.

Question

Figure 2.1.2
-Consider the production possibilities frontier in Figure 2.1.2.Which of the following statements is false?
A)Points inside the production possibilities frontier indicate wasted or misallocated resources. 
B)The opportunity cost of producing X increases as production of X increases. 
C)The opportunity cost of producing Y increases as production of Y increases. 
D)Resources are not equally useful in the production of X and Y. 
E)Production at point A shifts the production possibilities frontier outward.

Quizplus · Accepted Answer

Production at point A implies that all resources are being utilized efficiently, which means that the production possibilities frontier is not being fully exploited. Therefore, production at point A does not shift the production possibilities frontier outward.

Figure 2.1.2 -Consider the Production Possibilities Frontier in Figure 2.1.2.Which of the of the Following