Refer to the information provided in Figure 2.5 below to answer the questions that follow. Figure 2.5
-Refer to Figure 2.5. For this economy to move from Point A to Point B, ________ additional plasma TVs could be produced when the production of LCD TVs is reduced by 30.
A) exactly 20
B) fewer than 20
C) more than 20
D) exactly 90

Question

Refer to the information provided in Figure 2.5 below to answer the questions that follow.  Figure 2.5
-Refer to Figure 2.5. For this economy to move from Point A to Point B, ________ additional plasma TVs could be produced when the production of LCD TVs is reduced by 30.
A) exactly 20 
B) fewer than 20 
C) more than 20 
D) exactly 90

Quizplus · Accepted Answer

The slope of the PPF is -30/-20 = 1.5. So, for every 30 LCD TVs that are not produced, 20 additional plasma TVs can be produced.

Refer to the Information Provided in Figure 2