(The following economy produces two products.) Production Possibilities Table
Refer to the above table.A change from possibility C to B means that:
A)1 unit of steel is given up to get 75 units of wheat.
B)2 units of steel are given up to get 75 units of wheat.
C)1 unit of steel is given up to get 15 more units of wheat.
D)2 units of steel are given up to get 15 more units of wheat.

Question

(The following economy produces two products.) Production Possibilities Table
 Refer to the above table.A change from possibility C to B means that:
A)1 unit of steel is given up to get 75 units of wheat. 
B)2 units of steel are given up to get 75 units of wheat. 
C)1 unit of steel is given up to get 15 more units of wheat. 
D)2 units of steel are given up to get 15 more units of wheat.

Quizplus · Accepted Answer

Moving from possibility C to B means that the economy is giving up 1 unit of steel to produce 15 more units of wheat. This is a more efficient allocation of resources as the opportunity cost of producing wheat is lower (giving up less steel) and the economy can produce more wheat without reducing the production of steel. Therefore, choice C is the best option.

(The Following Economy Produces Two Products