-Refer to the above table.A total output of 3 units of capital goods and 4 units of consumer goods:
A) is irrelevant because the economy is capable of producing a larger total output.
B) will result in the maximum rate of growth available to this economy.
C) would involve an inefficient use of the economy's scarce resources.
D) is unobtainable in this economy.

Question

-Refer to the above table.A total output of 3 units of capital goods and 4 units of consumer goods:
A) is irrelevant because the economy is capable of producing a larger total output. 
B) will result in the maximum rate of growth available to this economy. 
C) would involve an inefficient use of the economy's scarce resources. 
D) is unobtainable in this economy.

Quizplus · Accepted Answer

A total output of 3 units of capital goods and 4 units of consumer goods would involve an inefficient use of the economy's scarce resources, as it suggests that the economy is not operating on its production possibility frontier, where resources are fully and efficiently utilized.

-Refer to the Above Table