Table 2.1.1 The Following Table Gives Points on the Production Possibilities Frontier

question 114

Multiple Choice

Table 2.1.1
The following table gives points on the production possibilities frontier for goods X and Y.

-From the data in Table 2.1.1, the production of 10 units of X and 28 units of Y is

• A)unattainable.
• B)attainable but leaves some resources misallocated.
• C)on the production possibilities frontier between points C and D.
• D)inside the PPF.
• E)possible if we reduce the amount of capital goods.

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Definitions:

Mortgage

A loan secured by the collateral of specified real estate property, where the borrower is obliged to make a predetermined set of payments to the lender.

Capital

The funds used to acquire the natural and human resources needed to provide products; also called financial resources.