Production possibilities (alternatives) Refer to the above table.A total output of 3 units of capital goods and 4 units of consumer goods:
A)is irrelevant because the economy is capable of producing a larger total output.
B)will result in the maximum rate of growth available to this economy.
C)would involve an inefficient use of the economy's scarce resources.
D)is unobtainable in this economy.

Question

Production possibilities (alternatives)  Refer to the above table.A total output of 3 units of capital goods and 4 units of consumer goods:
A)is irrelevant because the economy is capable of producing a larger total output. 
B)will result in the maximum rate of growth available to this economy. 
C)would involve an inefficient use of the economy's scarce resources. 
D)is unobtainable in this economy.

Quizplus · Accepted Answer

Producing 3 units of capital goods and 4 units of consumer goods would require the economy to operate at a point beyond its production possibilities curve, meaning that it is an unattainable combination with the current level of resources and technology. Therefore, it would be an inefficient use of the economy's scarce resources.

Production Possibilities (Alternatives) Refer to the Above Table