The Table Above Gives Four Production Possibilities for Aeroplanes and Cruise

question 15

Multiple Choice

The table above gives four production possibilities for aeroplanes and cruise ships. In possibility A, how many resources are devoted to the production of cruise ships?

• A) All
• B) Few
• C) Most
• D) None
• E) It is impossible to tell without more information about the prices of airplanes and cruise ships.

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Definitions:

Price Controls

Price Controls are governmental restrictions on the prices that can be charged for goods and services in a market, aiming to curb inflation and ensure affordability.

Binding Minimum Wage

A set wage minimum by the government that is above the equilibrium wage, leading to potential excess supply of labor, or unemployment.

Surplus Of Labor

A situation where the supply of labor exceeds the demand for labor, leading to unemployment or underemployment.

Minimum Wage

The lowest wage per hour that employers can legally pay their employees, as set by law or agreement.