Exhibit 2-12 Production Possibilities Curve

question 87

Multiple Choice

Exhibit 2-12 Production possibilities curve
-In Exhibit 2-12, suppose an economy with the given production possibilities curve is currently located at point A in the figure. Which of the following statements is false?

• A) This economy could produce more of both capital and consumption goods.
• B) This economy is experiencing full employment.
• C) This economy could produce more capital goods while holding fixed the number of consumption goods produced.
• D) This economy could produce more consumption goods while holding fixed the number of capital goods produced.
• E) Not every resource in this economy is being utilized

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