(Figure: Determining Production Possibilities 3) According to the graph, the output combination represented by the point can be achieved only

Question

Quizplus · Accepted Answer

According to the graph, the point represents a combination of goods that is outside the current production possibilities curve. This means that the economy does not have enough resources to produce this combination of goods at the moment. Therefore, the only way to achieve this output combination is by acquiring more resources, which is represented on the graph by an outward shift of the production possibilities curve.

(Figure: Determining Production Possibilities 3) According to the Graph, the Output