The Diagram Below Shows Two Production Possibilities Boundaries for Country

question 60

Multiple Choice

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4
-Refer to Figure 1-4.Suppose that Country X is currently producing at point E.Country X could achieve production at point D if

• A)the given resources were fully employed.
• B)the given resources were more efficiently employed.
• C)sufficient improvements in technology occurred in either the capital goods industry or the consumer goods industries.
• D)firms reduced output of capital goods.
• E)the prices of capital goods and consumption goods fell.

---

Definitions:

Concept

An abstract idea or a mental symbol typically associated with a corresponding object in the real world.

Variable

An element, feature, or factor that is liable to vary or change within the context of a mathematical expression, experiment, or statistical analysis.

Values

Core principles or standards that guide behavior and decision-making.

Ratio

A relationship between two numbers indicating how many times the first number contains the second.