Narrbegin Exhibit 2.10 Production possibilities frontier
-In Exhibit 2.10, which of the following points on the production possibilities curve are full-employment production points?

Question

Narrbegin Exhibit 2.10 Production possibilities frontier 
-In Exhibit 2.10, which of the following points on the production possibilities curve are full-employment production points?

Quizplus · Accepted Answer

All points on the production possibilities curve (A, B, C, D) represent full-employment production points, as they show the maximum possible output combinations that an economy can achieve when all resources are fully employed. Points inside the curve (like U) represent underutilization of resources, and points outside the curve (like E and W) are unattainable with current resources or technology.

Narrbegin Exhibit 2.10 Production Possibilities Frontier