Refer to the tables. Suppose that North Cantina is producing 2 units of capital goods and 17 units of consumer goods while South Cantina is producing 2 units of capital goods and 21 units of consumer goods. We can conclude that:
Answer the question on the basis of the following production possibilities tables for two countries, North Cantina and South Cantina:
A. North Cantina is fully and efficiently using its resources, but South Cantina is not.
B. South Cantina is fully and efficiently using its resources, but North Cantina is not.
C. neither South Cantina nor North Cantina is fully and efficiently using its resources.
D. both South Cantina and North Cantina are fully and efficiently using their resources.
B. South Cantina is fully and efficiently using its resources, but North Cantina is not.
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At macroeconomic equilibrium
What will be an ideal response?
An economist who would most likely use active policy making would support which of the following conclusions?
A) Demand shocks have little or no short-run effects on real Gross Domestic Product (GDP) and unemployment. B) Pure competition is not typical in most markets. C) Price flexibility is common in most markets. D) Supply shocks explain most business cycles.
Velocity is ________ if the demand for money depends on the interest rate.
A. infinite B. zero C. constant D. not constant
Walmart's prices are ________ national grocery averages.
A. 50% lower than B. above C. 15-22% lower than D. 3-7% lower than