Table 1.4

-According to the production possibilities schedule in Table 1.4, which of the following statements is true?

Question

Table 1.4
 
-According to the production possibilities schedule in Table 1.4, which of the following statements is true?

Quizplus · Accepted Answer

According to the production possibilities schedule, the economy can produce a maximum of 70 units of good A and 40 units of good B. Therefore, option D is the correct choice. Option A is incorrect because it exceeds the maximum possible production of good A. Option B and C are incorrect because they state that the opportunity cost decreases as production increases, which is not supported by the given data. Option E is incorrect because it suggests that the economy is not currently fully and efficiently employing its resources, which is not stated in the given data.

Table 1.4 -According to the Production Possibilities Schedule in Table 1.4, Which