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

Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter10: Financing And Producing Goods
Section: Chapter Questions
Problem 9AA
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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
Transcribed Image Text: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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