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.

Understand the principle of marginal productivity and its implications for resource use and firm profitability.

Analyze the impact of changes in good demand on the demand for resources used in production.

Understand the implications of production functions on output and marginal product.

Recognize the derived demand for inputs based on products demand and its consequences on labor and input markets.

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Definitions:

Progression Principle

A principle in physical training that suggests for improvement, the amount of exercise should increase gradually over time.

Hawthorne Effect

The phenomenon where individuals modify an aspect of their behavior in response to their awareness of being observed.

Weber's Bureaucracy Theory

A theory proposed by Max Weber, focusing on the division of labor, hierarchy, and rules as means to achieve an efficient organization.

Classical Management

An approach to management based on structured hierarchy, clear functions, and an emphasis on planning, organizing, leading, and controlling.