Use the following to answer questions:
-(Table: Production Possibilities Schedule I)Use Table: Production Possibilities Schedule I.If the economy produces 2 units of consumer goods per period,it also can produce,at MOST,_____ units of capital goods per period.
A) 30
B) 28
C) 24
D) 18

Question

Use the following to answer questions: 
-(Table: Production Possibilities Schedule I)Use Table: Production Possibilities Schedule I.If the economy produces 2 units of consumer goods per period,it also can produce,at MOST,_____ units of capital goods per period.
A) 30 
B) 28 
C) 24 
D) 18

Quizplus · Accepted Answer

According to the table, when the economy produces 2 units of consumer goods per period, it can produce at most 24 units of capital goods per period. This is the point on the production possibilities frontier where the economy is utilizing all of its resources efficiently. Any point beyond this would result in inefficiency or the need for more resources. Therefore, Choice C is the correct answer.

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