Use the following to answer questions:
Figure: Strawberries and Submarines
-(Figure: Strawberries and Submarines) Look at the figure Strawberries and Submarines. Suppose the economy is operating at point G. This implies that:
A)the economy can move to a point such as C only if it improves its technology.
B)the economy has unemployment and/or inefficiently allocates resources.
C)the economy lacks the resources to achieve a combination such as C.
D)people in this economy don't really like strawberries or submarines.

Question

Use the following to answer questions:
Figure: Strawberries and Submarines 
-(Figure: Strawberries and Submarines) Look at the figure Strawberries and Submarines. Suppose the economy is operating at point G. This implies that:
A)the economy can move to a point such as C only if it improves its technology. 
B)the economy has unemployment and/or inefficiently allocates resources. 
C)the economy lacks the resources to achieve a combination such as C. 
D)people in this economy don't really like strawberries or submarines.

Quizplus · Accepted Answer

Point G is inside the production possibility frontier (PPF), indicating that the economy is not producing at its maximum potential. This could be due to unemployment or inefficient allocation of resources. A point such as C is outside the PPF, and can only be achieved through improved technology or increased resources. Therefore, option A is incorrect. Option C is also incorrect as there is no indication in the figure that the economy lacks resources. Option D is irrelevant to the question.

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