Figure 2-4
-Refer to Figure 2-4.This economy has the ability to produce at which point(s)?

Question

Figure 2-4 
-Refer to Figure 2-4.This economy has the ability to produce at which point(s)?

Quizplus · Accepted Answer

The economy has the ability to produce at points R, T, and U because they all lie on the production possibility frontier (PPF). Point Q is unattainable given the current resources and technology, and point T is inefficient because resources are not being used efficiently. Therefore, the best choice(s) are points on the PPF, which are R, T, and U, but Q is unattainable.

Figure 2-4 -Refer to Figure 2-4.This Economy Has the Ability to Produce