A nation can produce two products: tanks and autos. The table below is the nation's production possibilities schedule. Given the production possibilities schedule above, a combination of 3 tanks and 350 autos
A) illustrates the trade-off between tanks and autos.
B) is attainable but entails some unemployment or inefficient use of society's resources.
C) cannot be produced by society, given its current resources and production technology.
D) is not attainable because this combination is not listed in the schedule.

Question

A nation can produce two products: tanks and autos. The table below is the nation's production possibilities schedule.  Given the production possibilities schedule above, a combination of 3 tanks and 350 autos
A) illustrates the trade-off between tanks and autos. 
B) is attainable but entails some unemployment or inefficient use of society's resources. 
C) cannot be produced by society, given its current resources and production technology. 
D) is not attainable because this combination is not listed in the schedule.

Quizplus · Accepted Answer

According to the production possibilities schedule, the maximum production possible is either 6 tanks and 0 autos or 0 tanks and 700 autos. Therefore, a combination of 3 tanks and 350 autos lies within the production possibilities frontier but entails some unemployment or inefficient use of society's resources. This is because the economy is not producing at its maximum potential, and some resources are not being utilized.

A Nation Can Produce Two Products: Tanks and Autos