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Consider the Following Substitution Possibility Graph

Question 22

Multiple Choice

Consider the following substitution possibility graph. Assume that the output level (i.e. Economic production) is the same for each line (Q0 = Q1 = Q2) . Which of the following statements is correct?
Consider the following substitution possibility graph. Assume that the output level (i.e. Economic production)  is the same for each line (Q0 = Q1 = Q2) . Which of the following statements is correct?   A)  Any point along Q2 represents a combination of resource outputs that  requires more natural capital relative to any point along Q1 or Q2. B)  Any point along Q2 represents a combination of resource outputs that  requires more human-made capital relative to any point along Q0 or Q1. C)  Any point along Q0 represents a combination of resource outputs that  requires more human-made capital relative to any point along Q1 or Q2. D)  Both a and b E)  None of the above


A) Any point along Q2 represents a combination of resource outputs that
requires more natural capital relative to any point along Q1 or Q2.
B) Any point along Q2 represents a combination of resource outputs that
requires more human-made capital relative to any point along Q0 or Q1.
C) Any point along Q0 represents a combination of resource outputs that
requires more human-made capital relative to any point along Q1 or Q2.
D) Both a and b
E) None of the above

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