Refer to the information provided in Figure 2.1 below for the economy of Macroland to answer the question(s) that follow. Figure 2.1
-Refer to Figure 2.1. If Macroland's economy is at Point A, it could produce more consumer goods
A) without sacrificing any capital goods.
B) only by sacrificing some capital goods.
C) only with technological improvements.
D) only with additional resources.

Question

Refer to the information provided in Figure 2.1 below for the economy of Macroland to answer the question(s) that follow.  Figure 2.1
-Refer to Figure 2.1. If Macroland's economy is at Point A, it could produce more consumer goods
A) without sacrificing any capital goods. 
B) only by sacrificing some capital goods. 
C) only with technological improvements. 
D) only with additional resources.

Quizplus · Accepted Answer

At Point A, Macroland is not utilizing all of its resources efficiently, as it is inside the production possibility frontier (PPF). This means it can produce more consumer goods without sacrificing capital goods, simply by moving towards the PPF.

Refer to the Information Provided in Figure 2