It is to be noted that the correct answer or option for the above consumer and capital goods related question is (Option D) . See the attached and the full question below.
What does Point Z connote?
It is to be noted that Point Z is unachievable since it is outside of even the second curve.
Hence, at full employment regardless, the point should be on the second curve.
However, Z is outside the curve, implying that it is only reachable if the quality of factors improves further, causing the curve to move to the right and coincide with Z.
Thus, the correct answer is D.
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Full Question:
(Figure: Consumer and Capital Goods) Look at the figure Consumer and Capital Goods. Point Z:
A will be attained as soon as the economy becomes efficient and moves to curve 2.
B. is attainable if the quantity and/or quality of factors decreases.
C is attainable if the economy is able to reach full employment.
D. is unattainable, all other things unchanged.
