-The Table Above Lists Six Points on the Production Possibilities

question 155

Multiple Choice

$$\begin{array} { | l | l | l | } \hline \text { Point } & \begin{array} { l } \text { Production of grain } \\\text { (tons) }\end{array} & \begin{array} { l } \text { Production of cars } \\\text { (cars) }\end{array} \\\hline \text { A } & 0 & 30 \\\hline \text { B } & 2 & 28 \\\hline \text { C } & 4 & 24 \\\hline \text { D } & 6 & 18 \\\hline \text { E } & 8 & 10 \\\hline \text { F } & 10 & 0 \\\hline\end{array}$$
-The table above lists six points on the production possibilities frontier for grain and cars. Given this information, which of the following combinations is unattainable?

• A) 6 tons of grain and 18 cars
• B) 7 tons of grain and 10 cars
• C) 2 tons of grain and 27 cars
• D) 4 tons of grain and 26 cars

---

Definitions:

Margin

In finance, margin refers to the difference between the selling price and the cost of goods sold, often expressed as a percentage of the selling price. In trading, it refers to the collateral required to open and maintain a position.

Cost

The amount of money required to purchase something or the expense incurred to create a product or service.

Overhead Costs

Expenses related to the day-to-day running of a business that are not directly linked to the production of goods or services.

Operating Profit

The income generated from the main activities of a company, not including interest and tax expenses.