Use the following to answer question:
-(Scenario: Linear Production Possibility Frontier)Use Scenario: Linear Production Possibility Frontier.Largetown CANNOT produce _____ shirts and _____ pairs of socks.
A)20;0
B)40;40
C)0;40
D)10;20

Question

Use the following to answer question: 
-(Scenario: Linear Production Possibility Frontier)Use Scenario: Linear Production Possibility Frontier.Largetown CANNOT produce _____ shirts and _____ pairs of socks.
A)20;0 
B)40;40 
C)0;40 
D)10;20

Quizplus · Accepted Answer

In a scenario with a linear Production Possibility Frontier (PPF), the trade-offs between producing two goods (in this case, shirts and pairs of socks) are constant. If Largetown cannot produce a combination of goods that lies outside its PPF, option B (40 shirts and 40 pairs of socks) is likely the correct answer because it suggests a level of production that exceeds the capacity or resources available, assuming a linear trade-off between producing shirts and socks.

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