If society begins by producing 3 units of X and 4 units of Y and then alters production so that it is now producing 4 units of X and 4 units of Y,and we know that the quantity and quality of resources were unchanged and that technology did not change,then:
A) 3 units of X and 4 units of Y are a combination best represented by a point inside the production possibilities curve [PPC].
B) society has moved along the PPC.
C) resources were being fully utilized at 3 units of X and 4 units of Y.
D) resources were being efficiently utilized at 3 units of X and 4 units of Y.
E) 3 units of X and 4 units of Y are a combination best represented by a point outside the PPC.
Correct Answer:
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