Question

The figure shows the production possibilities frontier for a country. If the country is producing at point D, then the

resources are being used efficiently.
technology associated with producing SUVs and compact cars is advancing.
resources are not being used efficiently and/or are unemployed.
production of SUVs and compact cars is maximized.

Answer 1

Do you remember this image?

Answer 2

So to understand your graph

We can make two kinds of cars
an SUV or a compact car

So we can make ONLY SUVs and that would be point A
Or we can make ONLY compact cars and that would be at the end of the curve (5,0)

Answer 3

Each car requires different resources- like different times to build the entire thing and material, etc

So if you're making all the SUV's you can at point A, but now you want to start making compact cars
Then you're taking away resources from the SUVs to make the compact cars
But now you're producing compact cars

Answer 4

Does that make sense so far?

Answer 5

That should help you understand at least what the graph means. Now if you're along that line, like they said in your previous question, you're at optimal efficiency.

If you're inside that line towards the left, you're being inefficient. If you're to the right of that line, it's not possible because you don't have enough resources to accomplish that

Answer 6

So let's look back at your question now and I see that I might have helped you eliminate some answer choices lol, but now that you read all that- what's your answer?