Question

HTU Spring 2019 Principles of Macroeconomic Quiz: ASSESS Chapter 2 Quiz This Question: 1 pt 10 of 19 The table provides information about the production possibilties of a firm that Cups (pe produces tableware Plates Possibility (per hour)(per Cups 16 12 and Draw points that show the three possibilities defined by the table. Label them A, B, and C Draw the firm's PPF by connecting the points. Label it Along this PPF, the quantities of 0 A. O B. O C. all goods other than plates and cups remain constant all goods other than plates and cups are increasing all goods other than plates and cups are decreasing D, plates and cups are either increasing or decreasing, so there is no scarcity > Draw on Click the graph, choose a tool in the palette and follow the instructions to create your graph. Save for Later have the plug-ins and players you need to view questions and

Answer 1

Answer - A

Explanation - while plotting this Production Possibility Frontier, we take into account only cups and plates. We plot the different combinations of these goods which we can produce. All items other than cups and plates are assumed to be constant.

For plotting the graph, we need to identify the three points - A,B and C

A is on the Y Axis (cups Axis, or the vertical axis). Mark A at point (4,0).

B is inside the graph region. It will on the point where 2 on X axis (plates) and 3 on Y axis intersect.

C is on X axis. It is 4 units along the Plates axis. That is, on the horizonal dark line.