Use the following to answer questions:
Figure: Wine and Wheat
-(Figure: Wine and Wheat)Use Figure: Wine and Wheat.If this economy is producing 12 tonnes of wheat and 9 000 bottles of wine,we know the economy:
A) is using its resources efficiently.
B) is using its resources inefficiently.
C) is producing at an unattainable point.
D) has unemployment.

Question

Use the following to answer questions:
Figure: Wine and Wheat 
-(Figure: Wine and Wheat)Use Figure: Wine and Wheat.If this economy is producing 12 tonnes of wheat and 9 000 bottles of wine,we know the economy:
A) is using its resources efficiently. 
B) is using its resources inefficiently. 
C) is producing at an unattainable point. 
D) has unemployment.

Quizplus · Accepted Answer

The economy is producing at a point on the production possibilities frontier, which means it is using all of its resources efficiently to produce both wine and wheat. Therefore, choice A is the best answer.

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