Points A and B on the Combined graph represent Malaysia's and Canada's production, and the red point shows the combined production of the two countries.Which of the following is a correct interpretation of points A and B?multiple choice 1Each country is using all of its resources.Malaysia is using a higher percentage of resources than Canada.Canada is using a higher percentage of resources than Malaysia.Both countries have unused resources that could increase production without a tradeoff. 0SETTINGSProduction PossibilitiesLaborMalaysiaCanadaMalaysia (Pt. A)Canada (Pt. B)Production Possibilities for MalaysiaLumber(0 - 320 ft³)280100Lumber(0 - 100%)5050ororRice(0 - 320 tons)70300Rice(%)50Reset50CALCULATIONSMalaysiaCanadaTotalInitial ProductionLumber14050Production Possibilities for Canada190Rice35150185New ProductionLumber14050190Rice35150185 GRAPHLumber280A (35, 140)70MALAYSIARiceLumber100CANADAB (150, 50)300EachCombinedRice

The Production Possibility Frontier (PPF) is a fundamental concept in economics that illustrates the…

Answered: Points A and B on the Combined graph…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Points A and B on the Combined graph represent Malaysia's and Canada's production, and the red point shows the combined production of the two countries.

Which of the following is a correct interpretation of points A and B?

multiple choice 1
Each country is using all of its resources.
Malaysia is using a higher percentage of resources than Canada.
Canada is using a higher percentage of resources than Malaysia.
Both countries have unused resources that could increase production without a tradeoff.

0
SETTINGS
Production Possibilities
Labor
Malaysia
Canada
Malaysia (Pt. A)
Canada (Pt. B)
Production Possibilities for Malaysia
Lumber
(0 - 320 ft³)
280
100
Lumber
(0 - 100%)
50
50
or
or
Rice
(0 - 320 tons)
70
300
Rice
(%)
50
Reset
50
CALCULATIONS
Malaysia
Canada
Total
Initial Production
Lumber
140
50
Production Possibilities for Canada
190
Rice
35
150
185
New Production
Lumber
140
50
190
Rice
35
150
185

GRAPH
Lumber
280
A (35, 140)
70
MALAYSIA
Rice
Lumber
100
CANADA
B (150, 50)
300
Each
Combined
Rice

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