Question 1 2 pts Figure 27 Tangines 45 40 35 30 25 20 15 10

Question 1 2 pts Figure 2-7 Tangines 45 40 35 30 25 20 15 10 5 10 15 20 25 30 35 40 45 s Refer to Figure 2-7. If this economy moved from point P to point N, then O it still would not be producing efficiently. O there would be no gain in either engines or tvs. O it would be producing more engines and more tvs than at point P additional resources.

Solution

Option 1 is correct

The economy would still not be producing efficiently. (Production efficiency is achieved at the production possibility frontier)