The following question are based on the following diagram:

-If the economy currently produces 4 million units of consumer goods and 2 million units of defense goods
A) it is operating on its production possibilities curve.
B) there must be unemployment of resources.
C) it is producing a combination that requires more resources than it has.
D) it is achieving economic but not technical efficiency.
E) defense goods are preferred to consumer goods.

Question

The following question are based on the following diagram:
 
-If the economy currently produces 4 million units of consumer goods and 2 million units of defense goods
A) it is operating on its production possibilities curve. 
B) there must be unemployment of resources. 
C) it is producing a combination that requires more resources than it has. 
D) it is achieving economic but not technical efficiency. 
E) defense goods are preferred to consumer goods.

Quizplus · Accepted Answer

The Answer of The following question are based on the following diagram:
 
-If the economy currently produces 4 million units of consumer goods and 2 million units of defense goods
A) it is operating on its production possibilities curve. 
B) there must be unemployment of resources. 
C) it is producing a combination that requires more resources than it has. 
D) it is achieving economic but not technical efficiency. 
E) defense goods are preferred to consumer goods.

The Following Question Are Based on the Following Diagram