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 capital goods
A) without sacrificing any consumer goods.
B) only by sacrificing some consumer 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 capital goods
A) without sacrificing any consumer goods. 
B) only by sacrificing some consumer goods. 
C) only with technological improvements. 
D) only with additional resources.

Quizplus · Accepted Answer

At Point A, Macroland's economy is not producing at its potential. It could produce more capital goods without sacrificing any consumer goods by moving to a point on the production possibilities frontier that is to the right of Point A.

Refer to the Information Provided in Figure 2