Table 2.1.2
-Refer to Table 2.1.2.According to this production possibilities frontier,
A)a combination of 0 kilograms of butter and 4 snowshoes is attainable.
B)the opportunity cost of producing snowshoes increases as more snowshoes are produced.
C)resources are equally useful in all activities.
D)the opportunity cost of producing snowshoes decreases as more snowshoes are produced.
E)a combination of 6 kilograms of butter and 1 snowshoe is inefficient.

Question

Table 2.1.2
-Refer to Table 2.1.2.According to this production possibilities frontier,
A)a combination of 0 kilograms of butter and 4 snowshoes is attainable. 
B)the opportunity cost of producing snowshoes increases as more snowshoes are produced. 
C)resources are equally useful in all activities. 
D)the opportunity cost of producing snowshoes decreases as more snowshoes are produced. 
E)a combination of 6 kilograms of butter and 1 snowshoe is inefficient.

Quizplus · Accepted Answer

The bowed-out shape of the production possibilities frontier indicates that resources are not equally useful in all activities. As more and more snowshoes are produced, the opportunity cost of producing each additional snowshoe increases. Therefore, the best choice would be to produce a combination of goods that falls on the production possibilities frontier, where resources are being used efficiently and the opportunity cost of producing each good is constant.

Table 2.1.2 -Refer to Table 2.1.2.According to This Production Possibilities Frontier