Feasible Output Combinations on the PPC

Steps:

• Locate the PPC, which shows maximum efficient output combinations of tea and coffee.
• Classify points: inside or on the curve are attainable; outside are unattainable.
• Evaluate each option's points against the PPC boundary.
• Select the option where all points are inside or on the curve.

Why B is correct:

• U, V, and Y lie on or inside the PPC, representing attainable combinations under resource constraints (opportunity cost principle).

Why the others are wrong:

• A includes X, which is outside the PPC and unattainable.
• C includes Z, which exceeds the economy's production capacity.
• D includes X and Z, both outside the PPC.

Final answer: B