Good x curve for an economy producing two goods X and Y All

Good x curve for an economy producing two goods, X and Y. All of the following may allow the economy to produce combination D in the

Solution

D is the point outside PPF, as point D is unattainable given the technology. But tecnological advances will surely make the economy to produce efficient combination at D

In the supply-demand graph , the Price ( independent variable) is plotted on the vertical axis, and the quantity (dependent variable) , whose value depends on price, is plotted horizontally.

On a PPF, the production of a good can increase with decrease in production of other good

From the above table, it is clearly seen that for both country the oppurtunity costs of civilian goods and military goods are increasing.

A point inside PPF, is an inefficient combination of output, as the resources are not getting fully utilized. So, by employing more of its available resources, the economy could move closer towards its PPF.