Production Possibilities Tables for Two Countries,North Cantina and South Cantina

question 156

Multiple Choice

Production possibilities tables for two countries,North Cantina and South Cantina:
North Cantina Production possibilities (alternatives)
South Cantina Production possibilities (alternatives)

-Refer to the above tables.Suppose that North Cantina is producing 2 units of capital goods and 17 units of consumer goods while South Cantina is producing 2 units of capital goods and 21 units of consumer goods.We can conclude that:

• A) North Cantina is fully and efficiently using its resources,but South Cantina is not.
• B) South Cantina is fully and efficiently using its resources,but North Cantina is not.
• C) neither South Cantina nor North Cantina are fully and efficiently using their resources.
• D) both South Cantina and North Cantina are fully and efficiently using their resources.

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Definitions:

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world of limited resources. It necessitates the need for prioritization and choice.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.

Production

The process of creating, manufacturing, or enhancing goods and services, involving the combination of resources like labor and raw materials.

Production Possibilities Frontier

The Production Possibilities Frontier (PPF) is a curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors.