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Figure 3.3.1 -Which Statement About the PPF in Figure 3.3.1 Is False

Question 78

Multiple Choice

  Figure 3.3.1 -Which statement about the PPF in Figure 3.3.1 is false? A)  Inputs are not equally productive in all activities. B)  Points inside the frontier represent unemployed inputs. C)  Starting at point a, an increase in the production of good Y will shift the frontier out. D)  The opportunity cost of producing good Y increases as production of Y increases. E)  Shifts in preferences for good X or good Y will not shift the frontier.
Figure 3.3.1
-Which statement about the PPF in Figure 3.3.1 is false?


A) Inputs are not equally productive in all activities.
B) Points inside the frontier represent unemployed inputs.
C) Starting at point a, an increase in the production of good Y will shift the frontier out.
D) The opportunity cost of producing good Y increases as production of Y increases.
E) Shifts in preferences for good X or good Y will not shift the frontier.

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