-The economy could reach point W if it
A)reduced the unemployment rate.
B)achieved economic growth.
C)decreased its quantity of land,labor and capital.
D)shifted resources from butter production into the manufacturing guns.

Question

-The economy could reach point W if it
A)reduced the unemployment rate. 
B)achieved economic growth. 
C)decreased its quantity of land,labor and capital. 
D)shifted resources from butter production into the manufacturing guns.

Quizplus · Accepted Answer

Point W represents a state of maximum possible economic growth, which implies an increase in the production of goods and services. This can only be achieved by increasing the quantity and/or productivity of factors of production (land, labor, and capital) and/or by improving technology. Options A, C, and D do not necessarily lead to economic growth and, therefore, cannot lead to point W.

-The Economy Could Reach Point W If It