Use the following to answer question(s):
Exhibit: Consumer and Capital Goods

-(Exhibit: Consumer and Capital Goods) If the economy is operating at point Y on currently relevant Curve 1, this means that:
A) the economy is at full employment and is efficient.
B) the economy is less than fully employed.
C) the economy is not efficient.
D) economic growth is not possible in the future.

Question

Use the following to answer question(s): 
Exhibit: Consumer and Capital Goods
 
-(Exhibit: Consumer and Capital Goods) If the economy is operating at point Y on currently relevant Curve 1, this means that:
A) the economy is at full employment and is efficient. 
B) the economy is less than fully employed. 
C) the economy is not efficient. 
D) economic growth is not possible in the future.

Quizplus · Accepted Answer

Point Y on Curve 1 indicates that the economy is operating on the production possibilities frontier, which represents full employment and efficient use of resources.

Use the Following to Answer Question(s)