Refer to Figure 1.7.If this economy is currently producing at point F, then by employing more resources this economy
A) Can move to point D, but not points G or J.
B) Can move to points D, G, or J.
C) Can move to point G, but not points D or J.
D) Will remain at point F .

Question

Refer to Figure 1.7.If this economy is currently producing at point F, then by employing more resources this economy
A) Can move to point D, but not points G or J. 
B) Can move to points D, G, or J. 
C) Can move to point G, but not points D or J. 
D) Will remain at point F .

Quizplus · Accepted Answer

Point F is not at the maximum production possibility frontier (PPF) of the economy. Therefore, by employing more resources, the economy can move towards points D, G, or J which are all on the PPF. The exact point they reach would depend on the availability and efficiency of the additional resources employed.