Table 3-13
The following table contains some production possibilities for an economy for a given month. $$\begin{array} { | c | c | }
\hline \text { SWratari } & \text { Glavi } \
\hline 4 & 300 \
\hline 6 & ? \
\hline 8 & 100 \
\hline
\end{array}$$
-Refer to Table 3-13. If the production possibilities frontier is a straight line, then "?" must be
A) 100.
B) 150.
C) 200.
D) 250.

Question

Table 3-13
The following table contains some production possibilities for an economy for a given month. $$\begin{array} { | c | c | } 
\hline \text { SWratari } & \text { Glavi } \
\hline 4 & 300 \
\hline 6 & ? \
\hline 8 & 100 \
\hline
\end{array}$$
-Refer to Table 3-13. If the production possibilities frontier is a straight line, then "?" must be
A) 100.
B) 150.
C) 200.
D) 250.

Quizplus · Accepted Answer

If the production possibilities frontier is a straight line, it means that the opportunity cost of producing one item is constant across all levels of production. To find the missing value, we can use the slope of the line formed by the given points. Using the formula for slope (change in y/change in x), we get:

Slope = (300 - 100)/(4 - 8) = -50

This means that for every unit of SWratari produced, Glavi must give up 50 units of production. Using this information, we can find the missing value:

6 - 4 = 2 (increase in SWratari)
2 x (-50) = -100 (decrease in Glavi)

300 - 100 = 200

Therefore, the missing value is 200, which is option C.

Table 3-13 the Following Table Contains Some Production Possibilities for an Economy

Table 3-13
the Following Table Contains Some Production Possibilities for an Economy