A
Answer:
Senator Long refers to point B on the graph as future production combination.
Explanation:
In the above diagram, Consumption goods are measured along x- axis and Capital goods are measured along y- axis.
For the given PPF, the points A, B, C and D diagram show the various production combinations of the Capital goods and Consumption goods shown on the two axis X and Y. The combination D is the most desirable of the production combinations with a higher number of units of both the Consumption and Capital goods. However, the combination D is unattainable given the resources or factors of production available for the production process. On the same lines of analysis, combination A is a suboptimal utilization of available resources. Combinations C and B are the points on the PPF showing the highest attainable production units among others with optimal resource utilization.
In the present context, Senator Long refers to point B on the graph as future production combination. This implies that within the resource constraint as defined by the PPF, a movement along the curve towards B shows an increased production of Consumption goods and less of Capital.
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