Exhibit 2-3

Multiple Choice

Exhibit 2-3
-Point g in Exhibit 2-3 is efficient because

A) the only way to increase production of A is by decreasing production of B
B) the economy can increase production of both A and B from point b
C) it is impossible to move to any other point along the production possibilities frontier
D) it is impossible to move to any other point inside the production possibilities frontier
E) no other production possibilities frontier exists