Please solve and show how you got the solution for by better understanding Figure 1Capital GoodsMPC.D. M to NConsumer Goods1. Which movement between two points represents economic growth?A. J to KB. K to LL to M2. Assuming the inner curve is our current production possibilities frontier, points J, Nand K representA. an inefficient use of resources.B. an output that is not possible to produce.C. points of unemployed resources.D. points of fully employed resources.3 Assuming the inner curve is our current production possibilities frontier, points M andL representA. an inefficient use of resources.B. an output that is not possible to produce.C. points of unemployed resources.D. points of fully employed resources.4. Assuming the inner curve is our current production possibilities frontier, points O andP representA. an inefficient use of resources.B. an output that is not possible to produce.C. points of unemployed resources.D. points of fully employed resources.

Answered: Figure 1 Capital Goods M N K Consumer…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter3: Scarcity, Trade-offs, And Production Possibilities

Section: Chapter Questions

Problem 10P

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Please solve and show how you got the solution for by better understanding

Figure 1
Capital Goods
M
P
C.
D. M to N
Consumer Goods
1. Which movement between two points represents economic growth?
A. J to K
B. K to L
L to M
2. Assuming the inner curve is our current production possibilities frontier, points J, N
and K represent
A. an inefficient use of resources.
B. an output that is not possible to produce.
C. points of unemployed resources.
D. points of fully employed resources.
3 Assuming the inner curve is our current production possibilities frontier, points M and
L represent
A. an inefficient use of resources.
B. an output that is not possible to produce.
C. points of unemployed resources.
D. points of fully employed resources.
4. Assuming the inner curve is our current production possibilities frontier, points O and
P represent
A. an inefficient use of resources.
B. an output that is not possible to produce.
C. points of unemployed resources.
D. points of fully employed resources.

Expert Solution

Step 1

Production possibility frontier shows the different different combination of production of two different goods with the given level of resources and constant technology level. PPF either shift or rotate. PPF shifts when resources level change on the other PPF rotate when technology level of goods change.

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