Figure 2-3
-Refer to Figure 2-3. At which point or points can the economy NOT produce?
A) point A
B) point C
C) points A and C
D) points A, C, and D

Question

Figure 2-3 
-Refer to Figure 2-3. At which point or points can the economy NOT produce?
A) point A 
B) point C 
C) points A and C 
D) points A, C, and D

Quizplus · Accepted Answer

The economy cannot produce at points A and C because these points are outside the production possibilities frontier (PPF). The PPF represents the maximum possible combinations of goods and services that an economy can produce with its given resources and technology. Points outside the PPF, such as A and C, are unattainable with the current resources and technology.

Figure 2-3 -Refer to Figure 2-3. at Which Point or Points Can