Check Your Understanding

1. Question

   True or false? Explain your answer.

   1. An increase in the amount of resources available to Tom for use in producing coconuts and fish does not change his production possibilities curve.

   2. A technological change that allows Tom to catch more fish relative to any amount of coconuts gathered results in a change in his production possibilities curve.

   3. Points inside a production possibilities curve are efficient and points outside a production possibilities curve are inefficient.