Table 23 -Refer to Table 2

Table 2.3
$$\begin{array}{l}\text { Table } 2.3\\\begin{array} { | l | l | l | l | l | l | } \hline \text { Products } & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\\hline \text { Capital goods } & 0 & 1 & 2 & 3 & 4 \\\hline \begin{array} { l } \text { Consumer } \\\text { goods }\end{array} & 40 & 35 & 20 & 7 & 0 \\\hline\end{array}\end{array}$$
-Refer to Table 2.3, which shows the production possibilities frontier between the production of capital goods and consumer goods in an economy. If this economy produced 4 units of capital goods, what can be stated of its production of consumer goods?

A) It represents unemployment of resources.
B) It represents zero production of consumer goods.
C) It would not represent an efficient combination of goods.
D) It cannot be reached using available technology.
E) It is less desirable than a point inside the frontier.

Correct Answer:

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