QUESTION IMAGE
Question
11 multiple choice 1 point
refer to the diagram. if society is currently producing the combination of bicycles and computers shown by point d, producing at point f would mean
cannot be achieved because resources are fully employed
will cost 1 unit of computers.
will cost 2 units of computers.
will cause some resources to become unemployed.
Step1: Analyze production - possibility frontier concept
The production - possibility frontier (PPF) shows the maximum possible combinations of two goods that can be produced given the available resources and technology. Points on the PPF represent efficient production, points inside represent inefficient production with unemployed resources, and points outside are unattainable.
Step2: Locate points D and F
Point D is on the PPF, meaning resources are fully employed. Point F is inside the PPF.
Step3: Determine the cost of moving from D to F
Moving from point D (on the PPF) to point F (inside the PPF) implies a reduction in the production of computers. At point D, the number of computers is 6, and at point F, the number of computers is 4. So the cost of moving from D to F is 2 units of computers.
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will cost 2 units of computers.