Question

Bread books Possibility (number) (number) 1,000 900 700 400 A. 100 200 300 400

The table above shows a production possibilities frontier for an economy. If the economy tried to produce a combination of 250 loaves of bread and 800​ books,

A.it is enjoying a free lunch.

B.there is some unemployment.

C.there is full employment.

D.the tradeoff between bread and books is inefficient.

E.it cannot produce this combination because it lacks enough resources or technology.

Answer 1

"E"

PPC gives the maximum combination the economy can produce, any economy can't produce this combination because it lacks enough resource or technology.