Figure 2-10
-Refer to Figure 2-10. If this economy put all available resources into the production of bananas, it could produce
A) 200 bananas and also 150 baseballs.
B) 300 bananas and also 100 baseballs.
C) 400 bananas and no baseballs.
D) It is impossible to know unless we know the quantity of resources available.

Question

Figure 2-10 
-Refer to Figure 2-10. If this economy put all available resources into the production of bananas, it could produce
A) 200 bananas and also 150 baseballs. 
B) 300 bananas and also 100 baseballs. 
C) 400 bananas and no baseballs. 
D) It is impossible to know unless we know the quantity of resources available.

Quizplus · Accepted Answer

The production possibilities frontier (PPF) shows the maximum possible output combinations of two goods that can be produced with available resources. If all resources are allocated to bananas, the economy can produce the maximum number of bananas, which is 400, with no resources left for baseballs.

Figure 2-10 -Refer to Figure 2-10. If This Economy Put All Available