Figure 3-2
-In Figure 3-2, at point B
A)it is impossible to increase production of consumer goods.
B)it is impossible to increase production of capital goods.
C)it is possible to increase production of both capital goods and consumer goods simultaneously.
D)it is impossible to increase production of both capital goods and consumer goods simultaneously.

Question

Figure 3-2 
-In Figure 3-2, at point B
A)it is impossible to increase production of consumer goods. 
B)it is impossible to increase production of capital goods. 
C)it is possible to increase production of both capital goods and consumer goods simultaneously. 
D)it is impossible to increase production of both capital goods and consumer goods simultaneously.

Quizplus · Accepted Answer

At point B, the economy is operating on its production possibility frontier (PPF), which means it is utilizing all its resources efficiently. Therefore, it cannot increase production of both capital goods and consumer goods simultaneously without sacrificing some of one to increase the other.

Figure 3-2 -In Figure 3-2, at Point B