Figure 2-8
-Refer to Figure 2-8. If this economy puts all of its resources into the production of bathtubs, how many could it produce?

Question

Figure 2-8 
-Refer to Figure 2-8. If this economy puts all of its resources into the production of bathtubs, how many could it produce?

Quizplus · Accepted Answer

The correct answer is based on the concept of a production possibilities frontier, which shows the maximum possible output combinations of two goods that an economy can achieve when all resources are fully and efficiently utilized. If the economy dedicates all its resources to producing bathtubs, it would produce the maximum number of bathtubs possible, with no resources left for producing barrels. Therefore, the correct choice is the one that shows the maximum number of bathtubs with zero barrels.

Figure 2-8 -Refer to Figure 2-8. If This Economy Puts All of Puts