Figure 3-2

-Refer to Figure 3-2. If the production possibilities frontier shown is for two months of production, then which of the following combinations of peanuts and cashews could Venezuela produce in two months?
A)7 pounds of peanuts and 135 pounds of cashews
B)5 pounds of peanuts and 160 pounds of cashews
C)2 pounds of peanuts and 240 pounds of cashews
D)3 pounds of peanuts and 150 pounds of cashews

Question

Figure 3-2
 
-Refer to Figure 3-2. If the production possibilities frontier shown is for two months of production, then which of the following combinations of peanuts and cashews could Venezuela produce in two months?
A)7 pounds of peanuts and 135 pounds of cashews 
B)5 pounds of peanuts and 160 pounds of cashews 
C)2 pounds of peanuts and 240 pounds of cashews 
D)3 pounds of peanuts and 150 pounds of cashews

Quizplus · Accepted Answer

The production possibilities frontier (PPF) represents the maximum combinations of two goods that can be produced given available resources and technology. Option D is likely on or within the PPF, indicating it is a feasible production combination.

Figure 3-2 -Refer to Figure 3-2. If the Production Possibilities Frontier Shown