Narrabegin Exhibit 2.11 Production possibilities frontiers
-In Exhibit 2.11, the production possibilities curves for a country are shown for the years 2002 and 2003. Suppose this country was located at point A in 2002 and point B in 2003. This economy:

Question

Narrabegin Exhibit 2.11 Production possibilities frontiers 
-In Exhibit 2.11, the production possibilities curves for a country are shown for the years 2002 and 2003. Suppose this country was located at point A in 2002 and point B in 2003. This economy:

Quizplus · Accepted Answer

Moving from point A in 2002 to point B in 2003 means that the country has produced more of both goods, indicating growth in the economy. Therefore, option D is correct. Options A, B, and E are incorrect because they imply a decline or stagnation in the economy, which is not the case. Option C is incorrect because, in 2003, the country is not fully efficient since it is not producing at the maximum point on the production possibility curve.

Narrabegin Exhibit 2.11 Production Possibilities Frontiers