Let's consider societal preferences now. If society prefers consumer goods to military goods, but doesn't want to completely eliminate military goods, which point would be prefered in this hypothetical society? Output of Military Goods (billions of units 160 per year) OA OB C OD 140 120 100 80 60 40 20 0 A U Inefficient point 20 B Attainable points Unattainable points 40 Z Unattainable point All points on curve are productively efficient PPC D 60 80 100 120 Output of Consumer Goods (billions of units per year)
Let's consider societal preferences now. If society prefers consumer goods to military goods, but doesn't want to completely eliminate military goods, which point would be prefered in this hypothetical society? Output of Military Goods (billions of units 160 per year) OA OB C OD 140 120 100 80 60 40 20 0 A U Inefficient point 20 B Attainable points Unattainable points 40 Z Unattainable point All points on curve are productively efficient PPC D 60 80 100 120 Output of Consumer Goods (billions of units per year)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Let's consider societal preferences now. If society prefers consumer goods to military goods, but doesn't want to completely eliminate military goods, which
point would be prefered in this hypothetical society?
Output of
Military Goods
(billions of units 160
per year)
Ο Ο Ο Ο
A
C
140
120
100
80
60
40
20
0
A
Inefficient
point
B
20
Attainable points
Unattainable points
40
Z Unattainable point
All points
on curve are
productively
efficient
PPC
D
60 80 100 120
Output of Consumer Goods
(billions of units per year)
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