Use the following to answer question:
-(Figure: Wine and Wheat)Use Figure: Wine and Wheat.If this economy is producing at point A and wants to produce at point B,it must:
A)trade with another country.
B)increase its resources.
C)decrease production.
D)use its existing resources efficiently.

Question

Use the following to answer question: 
-(Figure: Wine and Wheat)Use Figure: Wine and Wheat.If this economy is producing at point A and wants to produce at point B,it must:
A)trade with another country. 
B)increase its resources. 
C)decrease production. 
D)use its existing resources efficiently.

Quizplus · Accepted Answer

To move from point A to point B, the economy does not need to trade with another country or increase its resources. It also does not need to decrease production, as point B represents a higher level of output. The best option is to use the existing resources efficiently, which will allow for an increase in the production of both wine and wheat.

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