Figure 2-14 Consider the production possibilities curve for a country that can produce sweaters,apples (in bushels),or a combination of the two
-Refer to Figure 2-14.If this economy devotes all of its available resources to producing apples,then it will produce
A)0 bushels of apples and 200 sweaters.
B)80 bushels of apples and 160 sweaters
C)180 bushels of apples and 200 sweaters.
D)180 bushels of apples and 0 sweaters.

Question

Figure 2-14  Consider the production possibilities curve for a country that can produce sweaters,apples (in bushels),or a combination of the two
-Refer to Figure 2-14.If this economy devotes all of its available resources to producing apples,then it will produce
A)0 bushels of apples and 200 sweaters. 
B)80 bushels of apples and 160 sweaters 
C)180 bushels of apples and 200 sweaters. 
D)180 bushels of apples and 0 sweaters.

Quizplus · Accepted Answer

The production possibilities curve shows the trade-off between producing sweaters and producing apples. When all resources are devoted to producing apples, the economy can produce at point A, which is on the horizontal axis, indicating an output of 180 bushels of apples and 0 sweaters. Therefore, the best choice is D.

Figure 2-14 Consider the Production Possibilities Curve for a Country