Multiple Choice
(Figure: Pancakes and Cereal I) Which of the following statements is (are) TRUE? I. Points G, H, I, and J lie on the production contract curve.
II) Points H and J represent an inefficient input allocation.
III) At point G, allocating more labor and capital to the cereal industry will increase the output of cereal and pancakes.
A) II
B) I and III
C) I
D) II and III
Correct Answer:

Verified
Correct Answer:
Verified
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