If points A and B are two locations on a country's production possibility frontier, then
A) at any point in time, the country could produce both.
B) both bundles must have the same relative cost.
C) consumers are indifferent between the two bundles.
D) the country could produce either of the two bundles.
E) producers are indifferent between the two bundles.

Question

Quizplus · Accepted Answer

Points A and B on a production possibility frontier represent two different bundles of goods that a country can produce. The country can choose to produce either bundle A or bundle B, depending on its preferences and resource constraints. Therefore, option D is the best choice. Options B, C, and E are not necessarily true and do not provide a complete answer. Option A is partially correct, but it does not provide a clear explanation of the relationship between points A and B on the production possibility frontier.

If Points a and B Are Two Locations on a Country's