Exhibit 1-6
-Refer to the production possibilities schedule in Exhibit 1-6.A combination of 20 units of computers and 2 television sets
A)requires an infusion of technological know-how.
B)illustrates underemployment of resources.
C)is possible only with full and efficient use of all resources.
D)is unattainable because it requires resources that are not available.
E)cannot be produced with the current supply of resources.

Question

Exhibit 1-6 
-Refer to the production possibilities schedule in Exhibit 1-6.A combination of 20 units of computers and 2 television sets
A)requires an infusion of technological know-how. 
B)illustrates underemployment of resources. 
C)is possible only with full and efficient use of all resources. 
D)is unattainable because it requires resources that are not available. 
E)cannot be produced with the current supply of resources.

Quizplus · Accepted Answer

A combination of 20 units of computers and 2 television sets illustrates underemployment of resources because it is likely inside the production possibilities frontier, indicating that not all resources are being used efficiently.

Exhibit 1-6 -Refer to the Production Possibilities Schedule in Exhibit 1-6.A Combination