-Referring to Figure 1.1, points A, B, C, and D illustrate:
A) an inefficient allocation of society's scarce resources.
B) possible combinations of food output and film output.
C) a constant trade-off between food output and film output.
D) society prefers food output to film output.

Question

-Referring to Figure 1.1, points A, B, C, and D illustrate:
A) an inefficient allocation of society's scarce resources. 
B) possible combinations of food output and film output. 
C) a constant trade-off between food output and film output. 
D) society prefers food output to film output.

Quizplus · Accepted Answer

Points A, B, C, and D represent different combinations of two goods (food and film output) that a society can produce, illustrating the concept of a production possibilities frontier (PPF), which shows the possible combinations of two different goods that can be produced with available resources and technology.