In the above graph, if the economy is currently producing at point C and then shifts production to point A, then A. the economy moved from one efficient point to another efficient point. B. the opportunity cost of that shift is 40,000 units of corn. C. the economy moved from an inefficient point to an efficient point. D. both (B) and (C). E. none of the above.
In the above graph, if the economy is currently producing at point C and then shifts production to point A, then A. the economy moved from one efficient point to another efficient point. B. the opportunity cost of that shift is 40,000 units of corn. C. the economy moved from an inefficient point to an efficient point. D. both (B) and (C). E. none of the above.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
In the above graph, if the economy is currently producing at point C and then shifts production to point A, then
A. the economy moved from one efficient point to another efficient point.
B. the opportunity cost of that shift is 40,000 units of corn.
C. the economy moved from an inefficient point to an efficient point.
D. both (B) and (C).
E. none of the above.
Transcribed Image Text:Corn
120,000
80,000
40,000
B
с
5,000
D
A
10,000
15,000
Robots
Expert Solution
Step 1
The curve is the production possibilities frontier which shows different combinations of two goods that can be produced with the given level of resources and technology.
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