Question

Name: ID: A Exhibit 2-10 Production possibilities curve data Capital goods Consumption goods 23 19 13 1 11. Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. As additional units of capital goods are being produced, the number of consumption goods produced must because increase; the production possibility table shows only the maximum efficiency points increase; of the law of increasing costs decrease; of the law of increasing costs decrease; of the finite nature of the resource base increase; capital goods will assist in the production of consumer goods a. b. c. d. e. Exhibit 2-13 Production possibilities curve Consumption goods Capital goods 12. In Exhibit 2-13, point D: a. is preferred to point A. b. is a point of maximum production for this economy this year. c. is not achievable this year because of limited resources. d. could result from some degree of unemployment of inefficiency e. is preferred to point H

Answer 1

Ans

1 d is right because due to scarcity of resources we can't keep producing more of all goods. We have to sacrifice something to get more of other

2 D because using same resouces as used to produce D we can produce more of both goods