The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4
-Refer to Figure 1-4.Suppose that Country X is currently producing at point E.Country X could achieve production at point D if
A)the given resources were fully employed.
B)the given resources were more efficiently employed.
C)sufficient improvements in technology occurred in either the capital goods industry or the consumer goods industries.
D)firms reduced output of capital goods.
E)the prices of capital goods and consumption goods fell.

Question

The diagram below shows two production possibilities boundaries for Country X.  FIGURE 1-4
-Refer to Figure 1-4.Suppose that Country X is currently producing at point E.Country X could achieve production at point D if
A)the given resources were fully employed. 
B)the given resources were more efficiently employed. 
C)sufficient improvements in technology occurred in either the capital goods industry or the consumer goods industries. 
D)firms reduced output of capital goods. 
E)the prices of capital goods and consumption goods fell.

Quizplus · Accepted Answer

Point D represents a level of production that is beyond the current production possibilities frontier, which can only be achieved through technological advancements that increase the efficiency of resource use.

The Diagram Below Shows Two Production Possibilities Boundaries for Country