Use the following to answer questions :
Figure: Strawberries and Submarines II
-(Figure: Strawberries and Submarines II) Look at the figure Strawberries and Submarines II. The downward slope of the production possibility frontier implies that resources:
A)must be used efficiently.
B)are scarce.
C)should not be wasted.
D)should be allocated so that approximately equal amounts of both goods are produced.

Question

Use the following to answer questions :
Figure: Strawberries and Submarines II 
-(Figure: Strawberries and Submarines II) Look at the figure Strawberries and Submarines II. The downward slope of the production possibility frontier implies that resources:
A)must be used efficiently. 
B)are scarce. 
C)should not be wasted. 
D)should be allocated so that approximately equal amounts of both goods are produced.

Quizplus · Accepted Answer

The downward slope of the production possibility frontier implies that resources are scarce. This means that there are limited resources available to produce both goods, and therefore, efficient resource allocation is required to maximize production. Option A and C are partially correct, but they do not capture the essence of the implication of the downward slope of the production possibility frontier. Option D is incorrect because it assumes that equal amounts of both goods need to be produced, which may not be the case depending on market demand and supply.

Use the Following to Answer Questions