Exhibit 2-10 Production possibilities frontier

-In Exhibit 2-10,which of the following points on the production possibilities curve are full-employment production points?

Question

Exhibit 2-10 Production possibilities frontier
 
-In Exhibit 2-10,which of the following points on the production possibilities curve are full-employment production points?

Quizplus · Accepted Answer

Points A, B, and C are on the production possibilities curve and represent full-employment production points. Only these points represent an efficient and maximum utilization of resources given the current technology and resources available. Points D and E are outside the curve, indicating an unattainable production level, and points U and W are inside the curve, indicating an inefficient and suboptimal use of resources.

Exhibit 2-10 Production Possibilities Frontier