Use the following to answer question
Figure: Determining Production Possibilities
-(Figure: Determining Production Possibilities)The graph shows the PPF for goods A and B and X marks a combination that:

Question

Use the following to answer question 
Figure: Determining Production Possibilities
-(Figure: Determining Production Possibilities)The graph shows the PPF for goods A and B and X marks a combination that:

Quizplus · Accepted Answer

Point X is outside the production possibility frontier (PPF), indicating that it cannot be produced with current resources. Therefore, choice C is the correct answer. Choice A is incorrect because any point on the PPF involves opportunity costs. Choice B is incorrect because improvements in technology can shift the PPF outward, allowing for the production of previously unattainable combinations. Choice D is incorrect because the position of the PPF is not dependent on effort, but on the availability and efficiency of resources.

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