Solved

Given Below Is the Production Possibilities Schedule for Capital Goods

Question 72

Multiple Choice

Given below is the production possibilities schedule for capital goods and consumer goods.
Table 2.3
 Production Possibilities Schedule  Combination  Capital Goods  Consumer Goods  A 40 B 34 C 27 D 19 E 010\begin{array}{c}\text { Production Possibilities Schedule }\\\begin{array}{|c|c|c|}\hline \text { Combination } & \text { Capital Goods } & \text { Consumer Goods } \\\hline \text { A } & 4 & 0 \\\text { B } & 3 & 4 \\\text { C } & 2 & 7 \\\text { D } & 1 & 9 \\\text { E } & 0 & 10 \\\hline\end{array}\end{array}
-Consider Table 2.3. The production possibilities curve [PPC] representing this schedule would be:


A) bowed in.
B) bowed out.
C) a negatively sloped straight line.
D) a positively sloped straight line.
E) bowed in if consumer goods are plotted on the horizontal axis and bowed out if capital goods are plotted on the horizontal axis.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions