A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule: Refer to the above table. If the nation uses all of its resources to produce only wheat, then its production combination will be:
A) A
B) B
C) E
D) F

Question

A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule:  Refer to the above table. If the nation uses all of its resources to produce only wheat, then its production combination will be:
A) A 
B) B 
C) E 
D) F

Quizplus · Accepted Answer

If the nation uses all of its resources to produce only wheat, it can produce a maximum of 80 units of wheat at point A. This is the point on the production possibilities curve where all resources are allocated to wheat production and it is on the curve, showing the most efficient use of resources. Points B to F are all suboptimal production points.

A Nation Can Produce Two Products: Steel and Wheat