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-(Figure: Consumer and Capital Goods)Use Figure: Consumer and Capital Goods.If the economy is operating at point Y and its relevant production possibility frontier is curve 1:
A)the economy is at full employment and is efficient.
B)the economy is less than fully employed.
C)the economy is not efficient.
D)economic growth is not possible in the future.

Question

Use the following to answer question:

-(Figure: Consumer and Capital Goods)Use Figure: Consumer and Capital Goods.If the economy is operating at point Y and its relevant production possibility frontier is curve 1:
A)the economy is at full employment and is efficient. 
B)the economy is less than fully employed. 
C)the economy is not efficient. 
D)economic growth is not possible in the future.

Quizplus · Accepted Answer

Point Y on the production possibility frontier (curve 1) indicates that the economy is operating at full employment and is efficient, as it is on the curve, which represents maximum possible output.

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