-Refer to Exhibit 2-1.If the economy is at point C,it follows that
A) more guns and more butter could be produced with available resources than are currently being produced.
B) only more guns could be produced with available resources than are currently being produced.
C) only more butter can be produced with available resources than are currently being produced.
D) C is an unattainable point.

Question

-Refer to Exhibit 2-1.If the economy is at point C,it follows that
A) more guns and more butter could be produced with available resources than are currently being produced. 
B) only more guns could be produced with available resources than are currently being produced. 
C) only more butter can be produced with available resources than are currently being produced. 
D) C is an unattainable point.

Quizplus · Accepted Answer

Point C, being inside the production possibility frontier (PPF), indicates that the economy is not utilizing all available resources or technology efficiently. Therefore, it is possible to produce more of both goods (guns and butter) without sacrificing the production of the other, moving closer to the PPF.