The following economy produces two products.

- Given the production possibilities schedule above, a combination of three tanks and 350 autos:
A) illustrates the trade-off between tanks and autos.
B) is attainable but involves the unemployment or inefficient use of some of society's resources.
C) cannot be produced by society, given its current level of resources and production technology.
D) is not attainable because this combination is not listed in the schedule.

Question

The following economy produces two products.

- Given the production possibilities schedule above, a combination of three tanks and 350 autos:
A) illustrates the trade-off between tanks and autos. 
B) is attainable but involves the unemployment or inefficient use of some of society's resources. 
C) cannot be produced by society, given its current level of resources and production technology. 
D) is not attainable because this combination is not listed in the schedule.

Quizplus · Accepted Answer

This choice indicates that the combination is attainable but involves inefficient use of resources, suggesting that the economy is not operating on its production possibilities frontier.

The Following Economy Produces Two Products