04. Which of the following statements about point C is TRUE? a) production of both X and Y can increase, without more resources or improvement in technology. b) to produce more of product Y, some of product X has to be sacrificed. c) the economy cannot reach this point without an increase in resources or improvement in technology. d) the economy is producing efficiently. e) both (a) and (d) are correct. Production Possibilities Frontier2824point A- point Epoint Fpoint B16point D12point C844812162024productX20product Y

Answered: 16 point D 12 point C 8. 4 4 8 12 16 20…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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04. Which of the following statements about point C is TRUE?

		a) production of both X and Y can increase, without more resources or improvement in technology.
		b) to produce more of product Y, some of product X has to be sacrificed.
		c) the economy cannot reach this point without an increase in resources or improvement in technology.
		d) the economy is producing efficiently.
		e) both (a) and (d) are correct.

Production Possibilities Frontier
28
24
point A
- point E
point F
point B
16
point D
12
point C
8
4
4
8
12
16
20
24
productX
20
product Y

Expert Solution

Step 1

Trade off in PPF can take place if PPF lies inside.

Therefore here trade off between good x and good y will take place.

Therefore to produce,some x would be sacrificed.

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