Figure 2-7
-Refer to Figure 2-7.This economy has the ability to produce at which point(s)?
A)N,O,P
B)L,M
C)L,M,N,O,P
D)L,M,Q

Question

Figure 2-7 
-Refer to Figure 2-7.This economy has the ability to produce at which point(s)?
A)N,O,P 
B)L,M 
C)L,M,N,O,P 
D)L,M,Q

Quizplus · Accepted Answer

The economy has the ability to produce at all points on the production possibilities curve (PPC), which includes points L, M, N, O, and P. Therefore, option C is the best choice as it includes all the possible production points. Point Q is not on the PPC, so it is not a feasible production point.

Figure 2-7 -Refer to Figure 2-7.This Economy Has the Ability to Produce