Refer to the information provided in Figure 2.2 below for the economy of Microland to answer the questions that follow. Figure 2.2
-Refer to Figure 2.2. If Microland's economy is at Point A, it could produce more capital goods
A) without sacrificing any consumer goods.
B) by sacrificing some consumer goods.
C) only with technological improvements.
D) only with additional resources.

Question

Refer to the information provided in Figure 2.2 below for the economy of Microland to answer the questions that follow.  Figure 2.2
-Refer to Figure 2.2. If Microland's economy is at Point A, it could produce more capital goods
A) without sacrificing any consumer goods. 
B) by sacrificing some consumer goods. 
C) only with technological improvements. 
D) only with additional resources.

Quizplus · Accepted Answer

Moving from Point A towards producing more capital goods implies moving along the production possibility frontier (PPF) towards more capital goods and less consumer goods, indicating a trade-off where producing more of one type of good requires sacrificing some of the other.

Refer to the Information Provided in Figure 2