FIGURE 2-3

-Refer to Figure 2-3. Which of the following statements about Point A is most accurate?

Question

FIGURE 2-3
 
-Refer to Figure 2-3. Which of the following statements about Point A is most accurate?

Quizplus · Accepted Answer

Point A represents a situation where the economy is producing only wine and no bread. This is because Point A is located on the production possibilities frontier (PPF) for wine but outside the PPF for bread. Therefore, choice C is the most accurate. Choice A is incorrect because Point A is on the PPF for wine, indicating that production is occurring at maximum efficiency for wine. Choice B and D are also incorrect because Point A is not on the PPF for both wine and bread, indicating that only one good can be produced at this point.

FIGURE 2-3 -Refer to Figure 2-3. Which of the Following Statements About