Q: 26

efer to the following diagram regarding the production possibility curve. A E D Capital goods C O Consumer goods Which of the following statement is true? DA Point E is attainable within the given resources and technology constraints " Points A, B and C indicate the unattainable combinations "Point D represents the maximum quantities of consumer goods and capital goods that can be produced with the given resources Point D indicates inefficiency and underutilization of resources that may lead to the problem of surplus labour or unemployment in the economy