Barrels3530252015105024B6 8 10 12 14 16BathtubsRefer to Figure 2-8. What would happen if this economy moved from point F to point C?It still would not be producing efficiently.There would be no gain in either bathtubs or barrels.It would be producing more barrels and more bathtubs than at point C.It is not possible for this economy to move from point F to point C without additional resources.

Answered: Barrels 35 30 25 20 15 10 5 0 2 O wi B…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

Barrels
35
30
25
20
15
10
5
0
2
4
B
6 8 10 12 14 16
Bathtubs
Refer to Figure 2-8. What would happen if this economy moved from point F to point C?
It still would not be producing efficiently.
There would be no gain in either bathtubs or barrels.
It would be producing more barrels and more bathtubs than at point C.
It is not possible for this economy to move from point F to point C without additional resources.

Expert Solution

Step 1

Production Possibility Curve (PPC) shows the various combination of two goods that could be produced with given resources and technology.

Initially, the economy is at point F where it produces 15 units of barrels and 6 units of bathtubs. If the economy moves from point F to C, the economy will produce 20 units of barrels and 8 units of bathtubs. This shows that option B is incorrect because the economy is gaining due to movement in the production level and option D is also incorrect because it is possible that the economy could move.

Further, option C is incorrect because the economy would be producing more barrels and more bathtubs than at point F not point C.