Production Possibilities Tables for Two Countries, North Cantina and South

question 40

Multiple Choice

Production possibilities tables for two countries, North Cantina and South Cantina: North Cantina Production possibilities (alternatives)
South Cantina Production possibilities (alternatives)
Refer to the above tables.Suppose that North Cantina is producing 2 units of capital goods and 17 units of consumer goods while South Cantina is producing 2 units of capital goods and 21 units of consumer goods.We can conclude that:

• A)North Cantina is fully and efficiently using its resources, but South Cantina is not.
• B)South Cantina is fully and efficiently using its resources, but North Cantina is not.
• C)neither South Cantina nor North Cantina are fully and efficiently using their resources.
• D)both South Cantina and North Cantina are fully and efficiently using their resources.

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Definitions:

Production Process

The series of operations that transform raw materials into finished products or services.

Patents

Legal rights granted to inventors to exclusively produce, use, and sell their invention for a certain period of time, providing protection against unauthorized use.

R&D Expenditure

Funding allocated towards research and development activities to innovate or improve products or services.

Expected Rate of Return

A measure of the anticipated profit or loss on an investment, expressed as a percentage of the investment's initial cost.