Figure 5.1. The figure shows a linear production possibility curve representing a tradeoff faced by a country, between necessities and luxuries.
-Refer to figure 5.1. Suppose the country represented in the figure is a low income country. Given a voluntary choice, the country will choose to be:
A)on a new production possibility curve.
B)on point C, on the production possibility curve.
C)near point G or A, on the production possibility curve.
D)near point C, on the production possibility curve.
E)near point B, on the production possibility curve.

Question

Figure 5.1. The figure shows a linear production possibility curve representing a tradeoff faced by a country, between necessities and luxuries​. 
-Refer to figure 5.1. Suppose the country represented in the figure is a low income country. ​Given a voluntary choice, the country will choose to be:
A)​on a new production possibility curve. 
B)​on point C, on the production possibility curve. 
C)​near point G or A, on the production possibility curve. 
D)​near point C, on the production possibility curve. 
E)​near point B, on the production possibility curve.

Quizplus · Accepted Answer

Low-income countries typically prioritize basic needs such as food and clothing, represented by points near G or A on the production possibility curve, over other goods.

Figure 51 the Figure Shows a Linear Production Possibility Curve Representing