Consider the production possibilities frontier displayed in the figure shown.A society faced with this curve currently:
A)cannot obtain point B.
B)can only obtain point C.
C)can only obtain point D or point A.
D)cannot obtain point C.

Question

Consider the production possibilities frontier displayed in the figure shown.A society faced with this curve currently:
A)cannot obtain point B. 
B)can only obtain point C. 
C)can only obtain point D or point A. 
D)cannot obtain point C.

Quizplus · Accepted Answer

The society cannot obtain point B as it lies outside the production possibilities frontier, which means the resources required to produce at that point are not currently available. The society can only choose points A, C, or D along the production possibilities frontier. However, point A may not be the best choice as it represents inefficient utilization of resources. Point C represents production with all available resources while point D represents specialization in the production of one good at the cost of the other. Depending on the society's priorities and preferences, either point C or D may be the best choice.

Consider the Production Possibilities Frontier Displayed in the Figure Shown