Question

The economy was at point A producing 100X and 200Y. It moved to point B where it produces 200X and 300Y. It follows that Group of answer choices

Answer 1

Answer:

point A was a point below the economy's Production-Possibility Frontier  (PPF) or the economy's PPF could have shifted outward and point A was a point on the economy old PPF.

Explanation:

Production possibility frontier is a that describes a graphical or pictorial representation of several production possibilities of a given two commodities that can be produced when both rely on the same limited resources.

Hence, in this case, the above situation illustrates that point A was a point below the economy's Production-Possibility Frontier (PPF) or the economy's PPF could have shifted outward, and point A was a point on the economy old PPF.