Following Is the Production Possibilities Schedule for an Economy Producing

question 63

Multiple Choice

Following is the production possibilities schedule for an economy producing two goods, Good A and Good B.Table 2.1

-Suppose a society begins by producing 3 units of X and 4 units of Y and then alters production to 4 units of X and 4 units of Y. If the quantity and quality of resources and the technology being used remain unchanged, then:

• A)3 units of X and 4 units of Y are a combination best represented by a point inside the production possibilities curve [PPC].
• B)we can conclude that the society has moved along the PPC.
• C)we can conclude that resources were being fully utilized at 3 units of X and 4 units of Y.
• D)we can conclude that resources were being efficiently utilized at 3 units of X and 4 units of Y.
• E)3 units of X and 4 units of Y are a combination best represented by a point outside the PPC.