Use the following to answer question(s):
Exhibit: Production Possibilities Schedule 1

-(Exhibit: Production Possibilities Schedule 1) If the economy produces 10 units of capital goods per period, it also can produce at most _______ unit(s) of consumer goods per period.
A) 5
B) 4
C) 3
D) 2

Question

Use the following to answer question(s): 
Exhibit: Production Possibilities Schedule 1
 
-(Exhibit: Production Possibilities Schedule 1) If the economy produces 10 units of capital goods per period, it also can produce at most _______ unit(s) of consumer goods per period.
A) 5 
B) 4 
C) 3 
D) 2

Quizplus · Accepted Answer

The production possibilities schedule typically shows the maximum amount of two different goods that can be produced with a given set of resources. If producing 10 units of capital goods leaves resources to produce only 4 units of consumer goods, then the correct answer is 4 units, as it reflects the trade-off between producing capital and consumer goods.

Use the Following to Answer Question(s)