Figure 2-8

-Refer to Figure 2-8.If this economy puts all of its resources into the production of bathtubs it could produce

Question

Figure 2-8
 
-Refer to Figure 2-8.If this economy puts all of its resources into the production of bathtubs it could produce

Quizplus · Accepted Answer

The production possibilities frontier (PPF) in the diagram shows the maximum combinations of barrels and bathtubs that can be produced with the given resources and technology. If all resources are used in the production of bathtubs, the economy can produce 16 bathtubs and zero barrels, as shown by point A on the PPF. Therefore, the correct answer is (C) no barrels and 16 bathtubs.

Figure 2-8 -Refer to Figure 2-8.If This Economy Puts All of Its