The Data in the Accompanying Production Possibilities Tables (In Millions

question 327

Multiple Choice

$$\begin{array}{l}{ ~~~~~~~~~~~~~~~~~~\text { Germany Production Possibilities } } \\{ ~~~~~~~~~~~~~~~~~~~~~~~~~~\text { (Production Alternatives) } } \\\begin{array} { | l | c | c | c | c | c | c | } \hline \text { Product } & A & B & C & D & E & F \\\hline \text { Autos } & 0 & 4 & 8 & 12 & 16 & 20 \\\hline \text { Chemicals } & 40 & 32 & 24 & 16 & 8 & 0 \\\hline\end{array}\\\\{ ~~~~~~~~~~~~~~~~~~~~~~~\text { U.S. Production Possibilities } } \\{ ~~~~~~~~~~~~~~~~~~~~~~~~~~\text { (Production Alternatives) } } \\\begin{array} { | l | c | c | c | c | c | c | } \hline \text { Product } & A & B & C & D & E & F \\\hline \text { Autos } & 0 & 3 & 6 & 9 & 12 & 15 \\\hline \text { Chemicals } & 60 & 48 & 36 & 24 & 12 & 0 \\\hline\end{array}\end{array}$$ The data in the accompanying production possibilities tables (in millions of units) suggest that production in

• A) Germany is subject to increasing opportunity costs and in the United States to constant opportunity costs.
• B) the United States is subject to increasing opportunity costs and in Germany to constant opportunity costs.
• C) both Germany and the United States is subject to constant opportunity costs.
• D) both Germany and the United States is subject to increasing opportunity costs.

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Definitions:

Contract

An agreement between parties creating obligations that are enforceable or otherwise recognizable at law.

Macro Social Environment

The larger societal context in which individuals, groups, and organizations operate, encompassing cultural, economic, legal, and political aspects.

Economic Forces

Factors that affect the behavior of the economy, including demand and supply, inflation rates, and employment levels.

Political Forces

Refer to the influence exerted by political parties, interest groups, and governmental policies on decision-making processes.