Figure: Production Possibility Frontier

Essay

Figure: Production Possibility Frontier
(Figure: Production Possibility Frontier) Look at the figure Production Possibilities Frontier.If the economy is producing 8 cars and 12 computers per period:
A.this is an attainable choice but involves unemployment or inefficiency.
B.the notion of increasing opportunity cost is invalidated.
C.the economy is still efficient but has made a decision not to buy as much as it could.
D.something must be done to reduce the amount of employment.