Exhibit 2-18 Production possibilities curves In Exhibit 2-18, the production possibilities curves for a country are shown for the years Year X and Year Y. Suppose this country was located at point A in Year X and point B in Year Y. This economy:

Question

Exhibit 2-18  Production possibilities curves  In Exhibit 2-18, the production possibilities curves for a country are shown for the years Year X and Year Y. Suppose this country was located at point A in Year X and point B in Year Y. This economy:

Quizplus · Accepted Answer

The fact that the country was able to move from point A to point B on the production possibilities curve indicates that it has increased its output possibilities and has grown in the two-year period. Option A and E are incorrect because there is no information to suggest that the country is worse off or has higher unemployment in Year Y. Option B is incorrect because the country's production possibilities have increased. Option C is incorrect because the country's ability to produce more in Year Y does not necessarily indicate increased efficiency.

Exhibit 2-18 Production Possibilities Curves in Exhibit 2-18, the Production