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

Quizplus · Accepted Answer

Moving from Point B towards more capital goods production on the production possibility frontier (PPF) implies a trade-off, where producing more of one good results in producing less of the other. This is due to the economy's limited resources being reallocated from consumer goods to capital goods.

Refer to the Information Provided in Figure 2