Use the following production possibilities frontier for a country to answer the
ID: 1123789 • Letter: U
Question
Use the following production possibilities frontier for a country to answer the following questions. Which point(s) are unattainable? Briefly explain why. O Point V because it is inside the production possibilities frontier Points W, X, and Y because they are on the production possibilities frontier. None of the points because they all are feasible. Point Z because it is outside the production possibilities frontier. All the points because the production of each has an opportunity cost. 0 O Which point(s) are efficient? Briefly explain why O Point Z because it is where the most capital and consumption goods combined are produced. O Point w because it is where the most resources are used to produce capital goods. 0 Points V, W, X, and Y because they are attainable. 0 Points W, X, and Y because this is where maximum output is produced with available resources. 0 Point V because it is inside the production possibilities frontier Which point(s) are inefficient? Briefly explain why. 0 A. Point Z because it is unattainable. O B. Points W, X, Y, and Z because they are unattainable. C. Points W, X, and Y because they are on the production possibilities frontier 0 D. Point V because production there is not using all available resources. 0 E. Points V, W, X, and Y because they are attainable. At which point is the country's future growth rate likely to be the highest? Briefly explain why. O A. O B. ° C. Point Y because it is where the most resources are used to produce consumption goods. Point X because it is an efficient point where a mix of capital and consumption goods are produced. Point Z because it is where the production possibilities frontier will shift with growth. Click to select your answer.Explanation / Answer
1. Unattainable points are the ones which lie outside the possibility frontier. To attain those points, extra resources are required. Here, Point Z is unattainable.
OPTION D
2. W, X and Y are efficient because they lie on efficient frontier which means that this is the maximum amount that can be produced with the available resources.
OPTION D
3. V is the inefficient point because here resources are not used in an efficient way.
OPTION D
4. Point Z
OPTION C