Narrbegin Exhibit 2–9 Production possibilities frontier

-In Exhibit 2.9, which of the following is not true regarding point H? Point H:

Question

Narrbegin Exhibit 2–9 Production possibilities frontier

-In Exhibit 2.9, which of the following is not true regarding point H? Point H:

Quizplus · Accepted Answer

Point H represents a combination of maximum possible levels of both consumption and capital goods, which is only possible when the economy achieves full employment. Therefore, option B is incorrect as it suggests that point H could be achieved today only if the economy achieved full employment, while the fact is that point H cannot be achieved today at all.

Narrbegin Exhibit 2–9 Production Possibilities Frontier