Figure 11-1

The following graph shows the production possibility frontier for a country and the indifference curves for the consumers in that country.

Refer to Figure 11-1. Point E is superior to point (X1, Y1) for all of the following reasons except:

Question

Figure 11-1

​

The following graph shows the production possibility frontier for a country and the indifference curves for the consumers in that country.

​

Refer to Figure 11-1. Point E is superior to point (X1, Y1) for all of the following reasons except:

BlackTom AI · Accepted Answer

Point E lies on the production possibility frontier and is tangent to a higher indifference curve than the bundle (X1, Y1), so it does not give strictly greater amounts of both goods compared with (X1, Y1).

1) Relevant concepts
- Production possibility frontier (PPF): points on the PPF are economically efficient (no wasted resources).
- Indifference curves: points on higher indifference curves represent higher utility.
- Equilibrium/prices: when the price line (relative price) is tangent to both the PPF (production) and an indifference curve (consumption), markets are in equilibrium and marginal rates of substitution equal marginal rates of transformation.

2) Step-by-step reasoning
- The graph shows (X1, Y1) lying to the left and higher on the axes than E: X1 < X at E, and Y1 > Y at E. In other words, moving from (X1, Y1) to E increases X but reduces Y.
- E sits on the PPF, so it is economically efficient (no feasible reallocation could increase one good without reducing the other).
- The indifference curve through E is higher (further from the origin) than the indifference curve through (X1, Y1), so consumers get more utility at E.
- The labeled “efficient prices” (price line) passes through E and is tangent to the PPF/indifference curve; this indicates markets clear at those prices and production/consumption are in equilibrium.

3) Why the correct answer is correct
- The exception statement is “It provides more quantities of both goods.” That is false because E provides a larger quantity of X but a smaller quantity of Y compared with (X1, Y1). Thus E does not provide more of both goods simultaneously.

4) Why the other choices are incorrect
- “It provides more utility.” True: E lies on a higher indifference curve.
- “It is economically efficient.” True: E is on the PPF.
- “Markets are in equilibrium.” True: the efficient/price line is tangent at E, indicating price-based equilibrium.

Conclusion: Therefore the statement that E “provides more quantities of both goods” is the exception, which matches the provided correct answer.

Figure 11-1 The following graph shows the production possibility frontier for a country and the indifference curves for the consumers in that country. Refer to Figure 11-1. Point E is superior to point (X1, Y1) for all of the following reasons except:单项选择题

类似问题

Consider the PPF shown in the graph below to answer the question. Given current resources and technology, the attainable range is best described as:

On a production possibilities frontier (PPF) that shows the trade-off between consumer goods and capital goods given a fixed amount of labour, unemployment is illustrated by:

Refer to the following graph to answer the next question. In the graph, Point B is

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At a perfectly competitive equilibrium with production and trade, the slope of the production possibility frontier will be

PPF 之外的点是

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Figure 11-1 ​ The following graph shows the production possibility frontier for a country and the indifference curves for the consumers in that country. ​ Refer to Figure 11-1. Point E is superior to point (X1, Y1) for all of the following reasons except:单项选择题