Sam's Production Possibilities Frontier Has Good a on the Horizontal

question 351

Multiple Choice

Sam's production possibilities frontier has good A on the horizontal axis and good B on the vertical axis. If Sam is producing at a point inside his frontier, then he

• A) can increase production of both goods with no increase in resources.
• B) is fully using all his resources.
• C) values good A more than good B.
• D) values good B more than good A.