Exhibit 2-5

-Refer to Exhibit 2-5.Given available resources and technology,this economy can produce 50,000 television sets and 50,000 fax machines only if it chooses to
A) have an equal distribution of goods.
B) operate at both points C and D.
C) combine points C and D.
D) none of the above

Question

Exhibit 2-5
 
-Refer to Exhibit 2-5.Given available resources and technology,this economy can produce 50,000 television sets and 50,000 fax machines only if it chooses to
A) have an equal distribution of goods. 
B) operate at both points C and D. 
C) combine points C and D. 
D) none of the above

Quizplus · Accepted Answer

The economy can produce 50,000 television sets and 50,000 fax machines only if it operates efficiently on its production possibility frontier, which is not necessarily described by the options given.

Exhibit 2-5 -Refer to Exhibit 2-5.Given Available Resources and Technology,this Economy Can