Figure 3-8 Chile's Production Possibilities Frontier

question 3

Multiple Choice

Figure 3-8
Chile's Production Possibilities Frontier
Colombia's Production Possibilities Frontier
-Refer to Figure 3-8.If Chile and Colombia each divides its time equally between making coffee and making soybeans,then total production is

• A)12 pounds of coffee and 12 pounds of soybeans.
• B)14 pounds of coffee and 9 pounds of soybeans.
• C)16 pounds of coffee and 6 pounds of soybeans.
• D)28 pounds of coffee and 18 pounds of soybeans.

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Definitions:

Bananas

A tropical, edible fruit, curved in shape and rich in potassium, produced by various types of large herbaceous flowering plants.

Perfect Substitute

Products or goods that can serve the same purpose perfectly, such that a consumer is indifferent to which product they use.

Nuts

Edible seeds enclosed in a hard shell, often enjoyed as a snack or used in cooking.

Utility Function

A mathematical representation of how consumers rank different bundles of goods based on the satisfaction each bundle provides.