Refer to the information provided in Figure 2.2 below for the economy of Microland to answer the question(s) that follow. Figure 2.2
-Refer to Figure 2.2. If Microland's economy is at Point B, it could produce more consumer goods
A) without sacrificing any capital goods.
B) by sacrificing some capital goods.
C) only with technological improvements.
D) only with additional resources.

Question

Refer to the information provided in Figure 2.2 below for the economy of Microland to answer the question(s) that follow.  Figure 2.2
-Refer to Figure 2.2. If Microland's economy is at Point B, it could produce more consumer goods
A) without sacrificing any capital goods. 
B) by sacrificing some capital goods. 
C) only with technological improvements. 
D) only with additional resources.

Quizplus · Accepted Answer

At Point B, Microland is already producing a certain combination of consumer and capital goods. To produce more consumer goods from this point, it would have to reallocate resources from capital goods production, thus sacrificing some capital goods. This is because resources are limited and fully utilized, and to increase production of one type of good (consumer goods), production of the other type (capital goods) must decrease.

Refer to the Information Provided in Figure 2