03. If the economy is at point D, a) more can be produced of both X and Y, without an increase in resources or improvement in technology. b) to produce more of product Y, some of product X has to be sacrificed. c) the economy is not producing efficiently. d) the economy cannot reach this point without an increase in resources or improvement in technology. e) both (a) and (c) are correct Production Possibilities Frontier2824point A- point Epoint Fpoint B16point D12point C844812162024productX20product Y

A production possibility frontier (PPF) shows the maximum possible output combinations of two goods…

Answered: the economy is at point D, a)…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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03. If the economy is at point D,

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

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