Consider the production possibilities frontier displayed in the figure shown. Which of the following statements is currently true?



A. Producing at point A is the best choice, because some of both items are made.

B. Producing at point D would be inefficient, since no books would be produced.

C. Producing at point C is the best choice, because it's closest to the middle.

D. Producing at point B is impossible.


D. Producing at point B is impossible.

Economics

You might also like to view...

Why did the government use expansionary monetary policies in the late 1970s, and what was the principal negative macroeconomic effect of these policies?

What will be an ideal response?

Economics

The burden of a tax is placed entirely on the buyers of a good when the demand for the good is _____

a. perfectly inelastic b. perfectly elastic c. unit elastic d. relatively elastic

Economics

If people are self-interested, why does anyone give money to public radio?

Economics

If we observe that when consumers' incomes rise by 10%, the quantity demanded of ice cream increases by 5%, then ice cream is an inferior good

a. True b. False Indicate whether the statement is true or false

Economics