-Using Figure 1.5 above we know the production of 3 units of soda and 2 units of pizza is

Question

Quizplus · Accepted Answer

The production of 3 units of soda and 2 units of pizza being possible only if all resources were fully employed implies that this point is on the production possibility frontier (PPF), indicating efficient use of resources. Without seeing Figure 1.5, this answer is based on the understanding of how PPFs typically represent the trade-offs and opportunity costs associated with allocating resources between the production of different goods.