24.) If the economy were producing at 12 units of outboard motors and 8 units of

Question

24.) If the economy were producing at 12 units of outboard motors and 8 units of robots w A. C. D. the economy would be at a point inside its production possibilities curve. the economy would have unemployed resources. the economy would be at a point inside its production possibilities curve AND onomy would be at a point outside its production possibilities curve would have unemployed resources. 25.) Hypothetical Production Schedule for a Two-Product Economy Units of Unts of Points Consumer Soods Capnal Goods 40 112 120 If the economy produces 12 capital goods and 40 consumer goods, A. it is producing outside its production possibilities curve. is combination of output will most likely result in economic growth. the ability to produce more consumer goods can only be realized by sacrificing capital goods. this economy has some unemployed resources. C. D. 26.) Hypothetical Production Schedule for a Two-Product Economy oels Consumer Good Cacial Goods If the economy were producing at point E and moves to point D, A. resources will shift from producing capital goods to producing consumer goods. B. resources will shift from producing consumer goods to producing capital goods. C. more capital goods can be produced without any sacrifice in consumer goods production. more consumer goods can be produced without any sacrifice in capital goods production. D. 2-6

Explanation / Answer

1) Solution: the economy would be at a point inside it's production possibilities curve AND would have unemployed resources

Explanation: Since the combination lies inside the PPF thus resources are not properly utilised

2) Solution: this economy has some unemployed resources

Explanation: Since the combination lies inside the PPF thus economy has some unemployed resources

3) Solution: resource will shift from producing consumer goods to producing capital goods

Explanation: When point moves from E to D, resources will be utilised to produce more capital goods in comparison to consumer goods

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