Question

This economy cannot currently produce 70 washers and 70 dryers because a. it is not using all of its resources. b. it is not using the most efficient production process. c. it does not have the resources and technology to produce that level of output. d. All of the above are correct

Answer 1

Answer:

c. it does not have the resources and technology to produce that level of output

Explanation:

The complete question comes with the attached figure 2 which shows a downwards sloping PPC - Production possibilities curve. 70 washers and 70 dryers display a point outside the PPC curve.

• All points outside the PPC curve signify that there are scarcity of resources to reach that level of production

• All points inside the PPC curve signify that all the resources are not being effectively used
• All points on the PPC curve signify that production equals efficient allocation of resources