Figure 3-2
Brazil's Production Possibilities Frontier
-Refer to Figure 3-2.If the production possibilities frontier shown is for two months of production,then which of the following combinations of peanuts and cashews could Brazil produce in two months?
A)7 peanuts and 35 cashews
B)5 peanuts and 100 cashews
C)2 peanuts and 190 cashews
D)3 peanuts and 150 cashews

Question

Figure 3-2
Brazil's Production Possibilities Frontier 
-Refer to Figure 3-2.If the production possibilities frontier shown is for two months of production,then which of the following combinations of peanuts and cashews could Brazil produce in two months?
A)7 peanuts and 35 cashews 
B)5 peanuts and 100 cashews 
C)2 peanuts and 190 cashews 
D)3 peanuts and 150 cashews

Quizplus · Accepted Answer

Point D on the production possibilities frontier represents the combination of 3 peanuts and 150 cashews that Brazil could produce in two months. This point is on the production possibilities frontier, which means it is efficient and uses all available resources. Any point inside the production possibilities frontier would indicate that Brazil is not using all available resources and any point outside the production possibilities frontier would be unattainable with the given resources.

Figure 3-2 Brazil's Production Possibilities Frontier