FIGURE 2-2

-Refer to Figure 2-2. Which of the following statements about a movement from Point G to Point F is the most accurate?

Question

FIGURE 2-2
 
-Refer to Figure 2-2. Which of the following statements about a movement from Point G to Point F is the most accurate?

Quizplus · Accepted Answer

According to the production possibilities frontier in Figure 2-2, a movement from Point G to Point F indicates that the economy can produce more units of both wine and bread without sacrificing any output. This implies that there is room for efficiency gains and technological improvements that allow the economy to better utilize its resources. Therefore, option C is the most accurate statement among the given options. Options A and D involve sacrificing one good to produce more of another good, which is not evident from the graph. Option B is not supported by any information in Figure 2-2.

FIGURE 2-2 -Refer to Figure 2-2. Which of the Following Statements About