Exhibit 1-6
-Refer to the production possibilities schedule in Exhibit 1-6. A combination of 20 units of computers and 2 TV 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 TV 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

This combination indicates underemployment of resources because it represents a point inside the production possibilities frontier, suggesting that not all resources are being used efficiently.

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