Which of the following state- ments is false?

a. Resources are not equally productive in all activities.

b. Points inside the frontier represent unemployed resources.

c. Starting at point

a, an increase in the production of good Y will shift the frontier out.

d. The opportunity cost of producing good Y increases as production of Y increases.

e. Shifts in preferences for good X or good Y will not shift the frontier. Suppose a society produces only two goods-hockey sticks and maple leaves. Three alternative combinations on its PPF are given in Table