Top Posters
Since Sunday
g
3
3
2
J
2
p
2
m
2
h
2
s
2
r
2
d
2
l
2
a
2
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
nsdq007 nsdq007
wrote...
Go to Answer
Posts: 147
Rep: 1 0
A year ago

The diagram below shows two production possibilities boundaries for Country X.

Short description: A graph plots consumer goods against capital goods. Long description: The horizontal axis represents consumer goods. The vertical axis represents capital goods. The graph plots two concave down decreasing curves. The first curve, P P B subscript 1 begins at a point on the vertical axis, passes through the points, F, A, and B, and ends at a point on the horizontal axis. The second curve, P P B subscript 2 begins at a point on the vertical axis (above the point where the first curve begins), passes through a point, E, and ends at a point on the horizontal axis (to the right of the first curve). The point, C lies near the horizontal axis and parallel to A. The point, D is to the right of point E.

FIGURE 1-4

Refer to Figure 1-4. Suppose Country X is currently producing at point E. Country X could achieve production at point D if



▸ firms reduced output of capital goods.

▸ the given resources were fully employed.

▸ the given resources were more efficiently employed.

▸ the prices of capital goods and consumption goods fell.

▸ sufficient improvements in technology occurred in either the capital goods industry or the consumer goods industries.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
Read 62 times
1 Reply
Replies
Answer verified by a subject expert
bijin05bijin05
wrote...
#1
Posts: 146
Rep: 0 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

nsdq007 Author
wrote...

A year ago
You make an excellent tutor!
gmiannotti
wrote...

Yesterday
Brilliant ツ
yen
wrote...

2 hours ago
Thanks for your help!!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1068 People Browsing
 154 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 137
  
 248
  
 7730
Your Opinion
Which country would you like to visit for its food?
Votes: 204
Previous poll results: Who's your favorite biologist?