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A Country Currently Is Using All Its Land to Produce

Question 88

Multiple Choice

A country currently is using all its land to produce wheat and grapes.However,the land most suited to growing grapes is being used to produce wheat,and the land most suited to growing wheat is being used to produce grapes.Which of the following statements is true?


A) The country is operating outside of its production possibilities frontier.
B) The country is operating along its production possibilities frontier.
C) Wheat production must be sacrificed if the country increases grape production.
D) Grape production must be sacrificed if the country increases wheat production.
E) The country is operating inside its production possibilities frontier.

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