Figure: Drums and Shoes 
Given the graph of the production possibilities frontier in the figure, which of the following statements is TRUE?
Definitions:
Prior Knowledge
Information and understandings that individuals bring to a new learning experience, influencing how they absorb new information.
Fluid Intelligence
The aspect of intelligence involving the ability to reason quickly and to think abstractly, often seen as the capacity to solve novel problems.
Motor Abilities
Skills related to physical actions and movements, such as coordination, balance, and manual dexterity.
Encouragement
The act of giving support, confidence, or hope to someone.
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