1. Below is the production possibilities table for consumer goods (washing machine) and capital goods (tractor): Type of Production Production Possibilities A B C D E Washing Machine 0 4 8 12 16 Tractor 60 54 42 24 0 a) If the economy described by this production possibilities frontier was producing five washing machines and 30 tractors, what could you conclude about its use of resources? b) Can this society produce 10 washing machines and 50 tractors? What must occur before the society can attain such a level of production?
1. Below is the production possibilities table for consumer goods (washing machine) and capital goods (tractor): Type of Production Production Possibilities A B C D E Washing Machine 0 4 8 12 16 Tractor 60 54 42 24 0 a) If the economy described by this production possibilities frontier was producing five washing machines and 30 tractors, what could you conclude about its use of resources? b) Can this society produce 10 washing machines and 50 tractors? What must occur before the society can attain such a level of production?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
1. Below is the production possibilities table for consumer goods (washing machine) and capital goods (tractor):
|
Type of Production |
Production Possibilities |
||||
|
A |
B |
C |
D |
E |
|
|
Washing Machine |
0 |
4 |
8 |
12 |
16 |
|
Tractor |
60 |
54 |
42 |
24 |
0 |
a) If the economy described by this production possibilities frontier was producing five washing machines and 30 tractors, what could you conclude about its use of resources?
b) Can this society produce 10 washing machines and 50 tractors? What must occur before the society can attain such a level of production?
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