Question

Using the production possibilities frontier for the Macro Islands above, which of the following can we conclude about point A?

an increase in demand for fishing boats in the Macro Islands.

the addition of a new fishing boat factory in the Macro Islands.

the removal of a fishing boat factory in the Macro Islands.

a hurricane that destroyed all the fishing boats in the marina.

the addition of a new Guava Jelly factory in the Macro Islands.

Answer 1

I chose the second one