Use the following to answer questions :
-(Figure: Wine and Wheat) Look at the figure Wine and Wheat. If this economy is producing on the production possibility frontier, what would allow it to produce at point C?
A)an improvement in technology
B)a decrease in resources
C)a decrease in production
D)elimination of unemployment

Question

Use the following to answer questions : 
-(Figure: Wine and Wheat) Look at the figure Wine and Wheat. If this economy is producing on the production possibility frontier, what would allow it to produce at point C?
A)an improvement in technology 
B)a decrease in resources 
C)a decrease in production 
D)elimination of unemployment

Quizplus · Accepted Answer

An improvement in technology would allow the economy to produce at point C without sacrificing the production of other goods. This would shift the production possibility frontier outward, allowing for a higher level of production for both wine and wheat. The other choices would result in a decrease in production of one or both goods.

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