Use the following to answer questions :
Figure: Consumer and Capital Goods
-(Figure: Consumer and Capital Goods) Look at the figure Consumer and Capital Goods. If the economy is operating at point Y and its relevant production possibility frontier is curve 1:
A)the economy is at full employment and is efficient.
B)the economy is less than fully employed.
C)the economy is not efficient.
D)economic growth is not possible in the future.

Question

Use the following to answer questions :
Figure: Consumer and Capital Goods 
-(Figure: Consumer and Capital Goods) Look at the figure Consumer and Capital Goods. If the economy is operating at point Y and its relevant production possibility frontier is curve 1:
A)the economy is at full employment and is efficient. 
B)the economy is less than fully employed. 
C)the economy is not efficient. 
D)economic growth is not possible in the future.

Quizplus · Accepted Answer

Point Y is on curve 1, which means the economy is producing at the maximum possible output given its resources and technology. Therefore, the economy is at full employment and is efficient. Since the economy is operating at its maximum potential, economic growth may not be possible in the future without additional resources or technological advancements.

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