Multiple Choice
The endpoints of an economy's production possibilities frontier (PPF) for goods X and Y are: (2,000X,0Y) and (0X,500Y) .Furthermore,the opportunity cost between these two goods is always constant.Which of the following combinations of the two goods,X and Y,lies on the economy's PPF?
A) 400 units of X and 200 units of Y
B) 600 units of X and 250 units of Y
C) 400 units of X and 150 units of Y
D) 1,000 units of X and 250 units of Y
E) 300 units of X and 150 units of Y
Correct Answer:
Verified
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