Exhibit 1-8 -If Society Begins by Producing 3 Units of X and of X

Multiple Choice

Exhibit 1-8
-If society begins by producing 3 units of X and 4 units of Y and then alters production so that it is now producing 4 units of X and 4 units of Y, and we know that the quantity and quality of resources were unchanged and that technology did not change, then

A) society has moved along the production possibilities curve.
B) the combination of 3 units of X and 4 units of Y are best represented by a point inside the production possibilities curve.
C) the combination of 3 units of X and 4 units of Y are best represented by a point outside the production possibilities curve.
D) resources were being fully utilized at 3 units of X and 4 units of Y.
E) resources were being efficiently utilized at 3 units of X and 4 units of Y.