Asked by Giselle Gradilla on Jun 28, 2024
Verified
(Figure: Consumer and Capital Goods) Use Figure: Consumer and Capital Goods.Assume the economy's current production possibilities frontier is given by curve 1.Point Z:
A) is unattainable,all other things unchanged.
B) is attainable if the economy is able to reach full employment.
C) is attainable if the quantity and/or quality of factors decreases.
D) will be attained as soon as the economy becomes efficient and moves to curve 2.
Production Possibilities Frontier
A graph that shows the highest potential production levels for two or more products based on available resources.
Full Employment
Full employment refers to the condition in which all available labor resources are being used in the most efficient way possible, minimizing unemployment to only frictional or structural levels.
- Comprehend the principle of economic expansion as demonstrated by movements in the production possibilities curve.
- Expound on the importance of each point on, inside, and outside the demarcations of the production possibilities frontier.
Verified Answer
RB
Ruchika BatishJun 29, 2024
Final Answer :
A
Explanation :
Point Z lies outside the production possibilities frontier (PPF) and therefore is unattainable given the current level of resources and technology.
Learning Objectives
- Comprehend the principle of economic expansion as demonstrated by movements in the production possibilities curve.
- Expound on the importance of each point on, inside, and outside the demarcations of the production possibilities frontier.
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