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Exhibit: Bicycles and Radishes 1

-(Exhibit: Bicycles and Radishes 1) The exhibit shows production possibilities curves for two countries that produce only radishes and bicycles. The axes of both graphs are measured in equivalent units. Country A is now operating at point M, and Country B is now operating at point N. Suppose Country B wants to be able to produce more radishes and more bicycles. To do this, it must:
A) Use its resources more efficiently.
B) achieve full employment in its use of resources.
C) acquire more capital, more labor, more natural resources, and/or better technology.
D) do all of the above.

Question

Use the following to answer question(s): 
Exhibit: Bicycles and Radishes 1
 
-(Exhibit: Bicycles and Radishes 1) The exhibit shows production possibilities curves for two countries that produce only radishes and bicycles. The axes of both graphs are measured in equivalent units. Country A is now operating at point M, and Country B is now operating at point N. Suppose Country B wants to be able to produce more radishes and more bicycles. To do this, it must:
A) Use its resources more efficiently. 
B) achieve full employment in its use of resources. 
C) acquire more capital, more labor, more natural resources, and/or better technology. 
D) do all of the above.

Quizplus · Accepted Answer

In order for Country B to produce more radishes and bicycles, it needs to acquire additional resources such as capital, labor, natural resources, and/or better technology. This will enable it to shift its production possibilities curve outward, allowing for more efficient production and greater output of both goods. Simply using its current resources more efficiently or achieving full employment would not be enough to increase production beyond the current possibilities curve.

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