Use the following to answer questions :
Figure1-3
-Which of the following represents a mixture of goods which country A depicted in Figure 1-3 cannot produce?
A)Point D.
B)Point B.
C)Point C.
D)Point E.
E)All of the above.

Question

Use the following to answer questions :
Figure1-3 
-Which of the following represents a mixture of goods which country A depicted in Figure 1-3 cannot produce?
A)Point D. 
B)Point B. 
C)Point C. 
D)Point E. 
E)All of the above.

Quizplus · Accepted Answer

Point E cannot be produced by country A because it is outside of its production possibilities frontier (PPF). However, points B, C, and D are all within the PPF of country A, which means it has the capability to produce a mixture of those goods. Therefore, the only choice that represents a mixture of goods that country A cannot produce is point D.

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