If an Economy Is Operating on Its Production Possibilities Curve

question 218

Multiple Choice

If an economy is operating on its production possibilities curve for consumer goods and capital goods, this means that

• A) it is impossible to produce more consumer goods.
• B) resources cannot be reallocated between the two goods.
• C) it is impossible to produce more capital goods.
• D) more consumer goods can only be produced at the cost of fewer capital goods.

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