-The Above Figure Shows a Nation's Production Function

question 71

Multiple Choice

-The above figure shows a nation's production function. Point B is

• A) unattainable.
• B) attainable if the nation uses resources inefficiently.
• C) the maximum amount of real GDP the nation can ever produce.
• D) attainable if the nation uses resources efficiently.
• E) Both answers C and D are correct.

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Definitions:

Optimum

The most favorable condition or level for growth, reproduction, or efficiency.

Minimize

The act of making something as small or as insignificant as possible.

Optimum

The condition or degree of an outcome that is most favorable or efficient for a specific purpose.

Maximize

To increase to the greatest possible amount or degree, often used in the context of optimizing performance, efficiency, or profits.