Use the Following to Answer Questions

question 199

Multiple Choice

Use the following to answer questions:
Scenario: Linear Production Possibility Frontier
Largetown has a linear production possibility frontier, and it produces socks and shirts with 80 hours of labor. The table shows the number of hours of labor necessary to produce one pair of socks or one shirt.
-(Scenario: Linear Production Possibility Frontier) Look at the scenario Linear Production Possibility Frontier. Largetown CANNOT produce _____ shirts and _____ pairs of socks.

• A)20; 0
• B)40; 40
• C)0; 40
• D)10; 20

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Definitions:

Equilibrium Wage

The pay rate where the amount of work offered matches the amount of work required.

Union Membership

The state of being a member of a labor union, which is an organization that represents the collective interests of workers.

United States

A country located in North America, consisting of 50 states, a federal district, five major self-governing territories, and various possessions.

European Countries

Nations that are located in the continent of Europe, which have diverse cultures, economies, and political systems.