Following is the production possibilities schedule for an economy producing two goods, Good A and Good B.Table 2.1

-Suppose a society begins by producing 3 units of X and 4 units of Y and then alters production to 4 units of X and 4 units of Y. If the quantity and quality of resources and the technology being used remain unchanged, then:

Question

Following is the production possibilities schedule for an economy producing two goods, Good A and Good B.Table 2.1
 
-Suppose a society begins by producing 3 units of X and 4 units of Y and then alters production to 4 units of X and 4 units of Y. If the quantity and quality of resources and the technology being used remain unchanged, then:

Quizplus · Accepted Answer

BA) The increase in production of X without a decrease in Y, given unchanged resources and technology, suggests that the initial production point was inside the PPC, indicating underutilization of resources. B) Moving from producing 3 units of X and 4 units of Y to 4 units of X and 4 units of Y, without changing the amount of resources or technology, implies a movement along the PPC, reflecting a reallocation of resources.

Following Is the Production Possibilities Schedule for an Economy Producing