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FIGURE 12- 2 the Production Possibilities Boundary Shows Possible Combinations

question 54

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FIGURE 12- 2 The production possibilities boundary shows possible combinations of guns and butter that can be produced by a country.The lower diagram shows demand and supply for butter.
FIGURE 12- 2 The production possibilities boundary shows possible combinations of guns and butter that can be produced by a country.The lower diagram shows demand and supply for butter.    -Refer to Figure 12- 2.Suppose demand and supply for butter are shown by D and S,respectively.And suppose the economy is at point (a) on the production possibilities boundary.How can this economy move toward allocative efficiency? A) increase the supply of guns B) expand the production possibilities boundary outward C) produce less butter,more guns D) produce more butter,less guns E) increase the demand for butter
-Refer to Figure 12- 2.Suppose demand and supply for butter are shown by D and S,respectively.And suppose the economy is at point (a) on the production possibilities boundary.How can this economy move toward allocative efficiency?


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