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

Question

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

Quizplus · Accepted Answer

This combination falls on the production possibilities curve but not on the line, which means that it is attainable but involves the unemployment or inefficient use of some of society's resources. It indicates that the economy is not utilizing its resources efficiently to get the maximum output possible.

The Following Economy Produces Two Products