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Use the following production possibilities frontiers to answer the next question. Curve (a) is the current frontier for the economy. Focusing on curve (a), point N suggests that the economy currently produces

Options
A.a combination of output that is less than its potential.
B.less goods for the future than at point P.
C.less goods for the present than at point P.
D.more goods for the future than at point P.
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Step-by-Step Analysis
To analyze the question, we first identify the meaning of a point on or inside a production possibilities frontier (PPF). Option 1: a combination of output that is less than its potential. If point N lies inside (inward of) curve (a), it indicates underutilization of resources—the economy could produce more of at least one good without sacrificing the other. This aligns with being inside the frontier ......Login to view full explanation

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