nect 1/ Answer The Next Questic+ https//newconnect low/connect html pics 5.7 Use

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nect 1/ Answer The Next Questic+ https//newconnect low/connect html pics 5.7 Use the following diagram to answer the next question You have FWE M NTES remaning to complete your work reasons for an economy to have a production possibilities fronber of CD while the economy is operating at point X are Multiple Choice echnological progress and Industrial change ncreases in the quentity and the quality of nesounces mprovement in obor productivity and the number of work-hours and inefScient alliocetion of K Prev 12 of 45 N, ype here to search

Explanation / Answer

The PPF can be defined as the different combination of of two goods which can be produced with the available resources efficiently.

When either there is an improvement in the technology for increase in the resources, the PPF shift rightward and vice-versa.

So if the economy is producing below PPF at point X, it means there is unemployment and inefficient allocation of resources. This is the reason why economy is producing at point X.

Hence option fourth is the correct answer.

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