The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4
-Refer to Figure 1-4.If Country X,constrained by the production possibilities boundary PPB₁,is currently producing at point A,it can produce more capital goods by moving to point

Question

The diagram below shows two production possibilities boundaries for Country X.

FIGURE 1-4
-Refer to Figure 1-4.If Country X,constrained by the production possibilities boundary PPB₁,is currently producing at point A,it can produce more capital goods by moving to point

Quizplus · Accepted Answer

Country X can produce more capital goods by moving to point F because point F is on a higher production possibilities boundary (PPB₂) than point A. This means that Country X can produce more capital goods without sacrificing the production of other goods.

The Diagram Below Shows Two Production Possibilities Boundaries for Country