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Hypothetical Production Schedule for a Two-Product Economy -If the Economy Produces 12 Capital Goods and 40 Consumer

Question 133

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Hypothetical Production Schedule for a Two-Product Economy Units ofUnits of Points  Consumer Goods  Capital Goods  A 020 B 4016 C 7212 D 968 E 1124 F 1200\begin{array}{ccc}&Units~ of&Units~ of\\\text { Points } & \text { Consumer Goods } & \text { Capital Goods } \\\hline \text { A } & 0 & 20 \\\text { B } & 40 & 16 \\\text { C } & 72 & 12 \\\text { D } & 96 & 8 \\\text { E } & 112 & 4 \\\text { F } & 120 & 0\end{array}
-If the economy produces 12 capital goods and 40 consumer goods,


A) it is producing outside its production possibilities curve.
B) this combination of output will most likely result in economic growth.
C) the ability to produce more consumer goods can only be realized by sacrificing capital goods.
D) this economy has some unemployed resources.

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