Production possibilities
-In the above table, the production of 3 pizzas and 35 cases of soda is
A) possible only if there is inflation.
B) impossible unless more resources become available.
C) possible only if the economy produces with maximum efficiency.
D) feasible but would involve unemployed or misallocated resources.

Question

Production possibilities
-In the above table, the production of 3 pizzas and 35 cases of soda is
A) possible only if there is inflation. 
B) impossible unless more resources become available. 
C) possible only if the economy produces with maximum efficiency. 
D) feasible but would involve unemployed or misallocated resources.

Quizplus · Accepted Answer

The production of 3 pizzas and 35 cases of soda is feasible but would involve unemployed or misallocated resources because the economy is not currently producing at maximum efficiency. If it were, the production possibility curve would be further out, allowing for the production of more goods without sacrificing the production of others.

Production Possibilities -In the Above Table, the Production of 3 Pizzas and Pizzas