Production possibilities tables for two countries, North Cantina and South Cantina: North Cantina Production possibilities (alternatives)
South Cantina Production possibilities (alternatives)
Refer to the above tables.Suppose that resources in North Cantina and South Cantina are identical in quantity and quality.We can conclude that:
A)South Cantina has better technology than North Cantina in producing both capital and consumer goods.
B)North Cantina has better technology than South Cantina in producing both capital and consumer goods.
C)North Cantina is growing more rapidly than South Cantina.
D)North Cantina has better technology than South Cantina in producing consumer goods.

Question

Production possibilities tables for two countries, North Cantina and South Cantina: North Cantina Production possibilities (alternatives)
 South Cantina Production possibilities (alternatives)
 Refer to the above tables.Suppose that resources in North Cantina and South Cantina are identical in quantity and quality.We can conclude that:
A)South Cantina has better technology than North Cantina in producing both capital and consumer goods. 
B)North Cantina has better technology than South Cantina in producing both capital and consumer goods. 
C)North Cantina is growing more rapidly than South Cantina. 
D)North Cantina has better technology than South Cantina in producing consumer goods.

Quizplus · Accepted Answer

The production possibilities table shows that North Cantina can produce more consumer goods than South Cantina at every level of capital goods production. This suggests that North Cantina has better technology than South Cantina in producing consumer goods. However, we cannot conclude anything about which country has better technology for producing capital goods or overall economic growth.

Production Possibilities Tables for Two Countries, North Cantina and South