The Diagram Below Shows Two Production Possibilities Boundaries for Country

question 30

Multiple Choice

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1- 3
-Refer to Figure 1- 3. If Country X were producing at point C,

• A) it is not possible to move to any point on PPB1 or PPB2 without technological progress.
• B) this is the maximum output possible from given resources.
• C) the opportunity cost of moving to point A is to give up some capital goods.
• D) the opportunity cost of moving to point B is to give up some consumption goods.
• E) the opportunity cost of moving to point A is zero.

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