Question

look at the graph and fill in the corresponding points. (questions 1 - 5)
production possibilities frontier

carrots

corn

1. point(s) ___ describes resources are not being used efficiently (underutilization)
2. point (s) ___ describes the production of more corn than carrots
3. point (s) ___ describes the production of more carrots than corn
4. point(s) ___ describes resources being unobtainable based on current resources
5. point(s) ___ describes a curve, meaning that its resources are all available and being maximized to their full potential (maximum possible output)

Explanation:

1. Points inside the production - possibilities frontier represent underutilization of resources as more of both goods (carrots and corn) could be produced with the available resources. Point A is inside the curve, so it shows underutilization.
2. Points on the right - hand side of the curve where the quantity of corn is higher than that of carrots represent more corn production. Point C has more corn than carrots.
3. Points on the upper - hand side of the curve where the quantity of carrots is higher than that of corn represent more carrot production. Point B has more carrots than corn.
4. Points outside the production - possibilities frontier represent unattainable combinations given the current resources and technology. Point X is outside the curve, so resources are unattainable at this point.
5. Points on the production - possibilities frontier represent efficient use of resources where all resources are fully utilized and maximum possible output is achieved. Points B, D, and C are on the curve.

Answer:

1. A
2. C
3. B
4. X
5. B, D, C