Use the Following to Answer Question

question 1

Multiple Choice

Use the following to answer question:

-(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.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale.

Production Possibility Frontier

A graph that shows the maximum possible output combinations of two goods or services an economy can achieve when using all available resources efficiently.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time.