Use the figure below to answer the following questions.

Figure 2.1.2
-Refer to the production possibilities frontier in Figure 2.1.2. Suppose that 50 units of Y are currently being produced. Then
A)7 units of X are being produced.
B)6 units of X can be produced if all resources are used and assigned to the task for which they are the best match.
C)9 units of X can be produced if all resources are used and assigned to the task for which they are the best match.
D)resources are not being fully utilized.
E)6 units of X are being produced.

Question

Use the figure below to answer the following questions.
  
Figure 2.1.2
-Refer to the production possibilities frontier in Figure 2.1.2. Suppose that 50 units of Y are currently being produced. Then
A)7 units of X are being produced. 
B)6 units of X can be produced if all resources are used and assigned to the task for which they are the best match. 
C)9 units of X can be produced if all resources are used and assigned to the task for which they are the best match. 
D)resources are not being fully utilized. 
E)6 units of X are being produced.

Quizplus · Accepted Answer

At the current production level of 50 units of Y, we can see that the point where the PPF curve intersects with the X-axis is at around 6 units of X. This means that 6 units of X can be produced if all resources are fully utilized and allocated efficiently. Therefore, B is the correct answer.

Use the Figure Below to Answer the Following Questions