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The figure above shows the production possibilities frontier for a country. In order for it to produce at point E, the
A)production of SUVs would need to decrease.
B)country would need to use its resources more efficiently.
C)production of compact cars would need to decrease.
D)country would need to determine that compact cars and SUVs are equally important to it.
E)country would need to acquire more resources and/or more advanced technology.

Question

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The figure above shows the production possibilities frontier for a country. In order for it to produce at point E, the
A)production of SUVs would need to decrease. 
B)country would need to use its resources more efficiently. 
C)production of compact cars would need to decrease. 
D)country would need to determine that compact cars and SUVs are equally important to it. 
E)country would need to acquire more resources and/or more advanced technology.

Quizplus · Accepted Answer

Point E lies outside the current production possibilities frontier, indicating that the country would need more resources or advanced technology to produce at that level.

- the Figure Above Shows the Production Possibilities Frontier for a for a Country