Exhibit 2-8 Production Possibilities Curve Data -As Shown in Exhibit 2-8, a Total Output of 0

question 68

Multiple Choice

Exhibit 2-8 Production possibilities curve data $$\begin{array} { | l | r | r | r | r | r | r | } \hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } \\\hline \text { Capital goods } & 15 & 14 & 12 & 9 & 5 & 0 \\\text { Consume goods } & 0 & 2 & 4 & 6 & 8 & 10 \\\hline\end{array}$$
-As shown in Exhibit 2-8, a total output of 0 units of capital goods and 10 units of consumer goods is:

• A) the maximum rate of output for this economy.
• B) an inefficient way of using the economy's scarce resources.
• C) the result of maximum use of the economy's labor force.
• D) unobtainable in this economy.

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Definitions:

Standard Hours (SH)

Standard Hours (SH) refer to the estimated time considered necessary to perform a task or produce a good under normal conditions, used for planning and efficiency analysis.

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost of those materials.

Attainable Standard

A performance measure based on achievable levels of efficiency and effectiveness under current conditions.

Perfection Standard

An idealistic benchmark for performance or quality that may be impossible to achieve but serves as a high goal.