Use the following to answer questions :
Figure: Production Possibility Frontier Curve for Tealand
-(Figure: Production Possibility Frontier for Tealand) Look at the figure Production Possibility Frontier for Tealand. Tealand can produce at point E only if the government:
A)eliminates unemployment.
B)raises taxes.
C)permits more immigration.
D)increases the cost of production by decreasing the use of technology.

Question

Use the following to answer questions :
Figure: Production Possibility Frontier Curve for Tealand 
-(Figure: Production Possibility Frontier for Tealand) Look at the figure Production Possibility Frontier for Tealand. Tealand can produce at point E only if the government:
A)eliminates unemployment. 
B)raises taxes. 
C)permits more immigration. 
D)increases the cost of production by decreasing the use of technology.

Quizplus · Accepted Answer

Point E is outside the current production possibility frontier, indicating that Tealand needs more resources, such as labor, which can be achieved by permitting more immigration.

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