-The Figure Above Shows Sam's Budget Line

question 433

Multiple Choice

-The figure above shows Sam's budget line. Which of the following combinations of gasoline and coffee are available to Sam?

• A) 40 gallons of gasoline and 1 pound of coffee
• B) 1 gallon of gasoline and 20 pounds of coffee
• C) 16 gallons of gasoline and 12 pounds of coffee
• D) 12 gallons of gasoline and 16 pounds of coffee

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Definitions:

Capital Goods

Long-lasting goods that are used in the production of other goods or services, such as buildings, machinery, and equipment.

Consumer Goods

Products that are sold directly to consumers for their personal or household use, typically including items like electronics, appliances, and clothing.

Capital Goods

Long-term assets such as machinery, buildings, and equipment purchased by businesses to produce goods and services.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs, assuming full and efficient utilization of resources.