Question

A production possibilities table for DVDs and computers is shown below.

Production Alternatives Type of Production A Computers DVDs 20 60 80 80 70 35 a. Show these data graphically, and then identify a point that indicates an inefficient use of resources and a point that indicates an unattainable combination of goods Instructions: Use the tool provided 'PPC to draw a PPC curve (plot 5 points total) 100 Tools 80 PPC 60 40 20 20 40 60 80 100

Point  (Click to select)  G  F  D  B  C  A  is an example of an inefficient point, while  (Click to select)  G  B  A  D  F  C  is an example of an unattainable point.

b. Does the economy above demonstrate the law of increasing opportunity cost?

   (Click to select)  Yes  No  

Answer 1