Exhibit 2-18 Production Possibilities Curves

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:

A) is worse off in Year Y than in Year X.
B) has stagnated production in this two year period.
C) has less unemployment in Year Y than it did in Year X.
D) has shown growth between these two years.