Question

Cars (thousands per week) 24 F G The figure shows an economy's production possibilities frontier and identifies some production points. We can produce all combinations_ O A. inside the PPF, on the PPF, and outside the PPF O B. inside the PPF and on the PPF OC. on the PPF but not inside or outside the PPF OD. on the PPF and outside the PPF O E. inside the PPF but not on the PPF or outside the PPF Which points are attainable? O A. Points F and G only OB. Points A, B, and C only O C. Points A, B, C, D, and E OD. Points A, B, C, F, and G O E. Points D and E only 2 4 6 Airplanes (per week) PPF 10

Answer 1

A production possibility curve is a representation of production of two type of goods in an economy over a given period of time in various combinations

here the two goods are cars and aeroplanes

If any good is produced on the production possibility curve then it can be said that the resources are fully optimised and used in efficient manner

If any point lies inside the the production possibility curve then it can be said that the production is done but resources are underutilized

If any point lies outward of the production possibility curve then this production cannot be reached with the given technology and resources

In the given question we can produce all combinations that are on and inside the production possibility curve

Hence the correct answer is option B

2

As discussed above the points that are attainable can be the points on the production possibility curve and inside the production possibility curve

So the points can be A,B,C,D,E

The correct answer is option C