Question

For a nation that only produces two​ goods, the maximum amounts of each of those goods that can be produced are represented by points on a production possibilities curve that are​ half-way between the vertical and horizontal axes.

a) True
b) False

Answer 1

False

Step-by-step explanation:

Say that you have the product A in the vertical axis and product B in horizontal axis.

The point in the curve which intersects the vertical axis means means that the nation produces all A and no B. In this case, the maximum amount of A is given by that point.

The same is truth when the curve intersects with the horizontal axis, at which point you maximize production of B and don't produce any A