04. Which of the following statements about point C is TRUE? a) production of both X and Y can increase, without more resources or improvement in technology. b) to produce more of product Y, some of product X has to be sacrificed. c) the economy cannot reach this point without an increase in resources or improvement in technology. d) the economy is producing efficiently. e) both (a) and (d) are correct. Production Possibilities Frontier2824point A- point Epoint Fpoint B16point D12point C844812162024productX20product Y

Answered: 16 point D 12 point C 8. 4 4 8 12 16 20…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 11RQ: What does a production possibilities frontier illustrate?

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Question

04. Which of the following statements about point C is TRUE?

		a) production of both X and Y can increase, without more resources or improvement in technology.
		b) to produce more of product Y, some of product X has to be sacrificed.
		c) the economy cannot reach this point without an increase in resources or improvement in technology.
		d) the economy is producing efficiently.
		e) both (a) and (d) are correct.

Production Possibilities Frontier
28
24
point A
- point E
point F
point B
16
point D
12
point C
8
4
4
8
12
16
20
24
productX
20
product Y

Expert Solution

Step 1

Trade off in PPF can take place if PPF lies inside.

Therefore here trade off between good x and good y will take place.

Therefore to produce,some x would be sacrificed.

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