Exhibit 2-7 Refer to Exhibit 2-7. Which of the following statements is true? A)Points B and D are more efficient than points A and C. B)If the economy's PPF is represented by PPF₁, points A and B are productive efficient, while C and D are unattainable. C)If the economy's PPF is represented by PPF₂, points C and D are productive efficient, while A and B are unattainable. D)Point F is more efficient than point D.

Question

Quizplus · Accepted Answer

The PPF curve represents the maximum combinations of two goods that an economy can produce given its resources and technology. In this exhibit, the PPF is represented by the curve PPF₁. Points A and B lie on the PPF curve, indicating that the economy can produce these combinations efficiently. Points C and D, however, lie outside the PPF curve, indicating that they are unattainable with the current level of resources and technology. Therefore, statement B is correct. Statements A, C, and D are all incorrect based on the given information.

Exhibit 2-7 Refer to Exhibit 2-7. Which of the Following Statements Is