The table above shows the PPF of an island community. Choose the best statement
A. Suppose that this community produces 3 pounds of fish and 20 pounds of berries. If it decides to gather more berries, it faces a tradeoff.
B. When this community produces 4 pounds of fish and 12 pounds of berries it faces a tradeoff, but it is inefficient.
C. Suppose that this community produces 5 pounds of fish and 0 pounds of berries. If it decides to gather some berries, it will get a free lunch.
D. If this community produces 3 pounds of fish and 22 pounds of berries, production is efficient but to produce more fish it faces a tradeoff.
D The production point is on the PPF so production is efficient and there is a tradeoff when more fish are produced.
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A successful cartel must divide the market among its members to prevent members'
A) marginal cost from exceeding their individual marginal revenues. B) output from decreasing. C) prices from rising above the cartel price. D) selling costs from rising.
The amount of a particular good that sellers in a market will sell at a given price during a specified period is called:
A. quantity demanded. B. quantity supplied. C. demand. D. supply.
Tasha decides that when homes in her neighborhood are selling for $150,000 she will not sell her home. When average prices rise to $175,000, she decides that she will put her home on the market. This is an example of:
A. market demand. B. a negatively-sloped supply curve. C. an excess supply of homes. D. a positively-sloped supply curve.
In the figure below, AB is the production-possibility curve of Canada. I1 and I2 are two of the community indifference curves of Canada. In the absence of trade Canada will:
A. produce at point S1 and consume at point C0. B. produce at point S1 and consume at point C1. C. produce and consume at point C0. D. produce and consume at point S1.