Given Below Is the Production Possibilities Schedule for a Small

Given below is the production possibilities schedule for a small island nation in South Pacific that produces capital and consumer goods.Table 2.3

-Refer to Table 2.3. Identify the correct statement.

A) The best the economy can do is to produce 10 units of capital goods and 4 units of consumer goods.
B) The best the economy can do is to produce no capital goods and produce 2 units of consumer goods.
C) If the economy produces 10 units of capital goods and no units of consumer goods, there is unemployment.
D) If the economy produces 4 units of capital goods, it can manage to produce only 3 units of consumer goods.
E) In order to produce the 10th unit of capital goods, 4 units of consumer goods must be forgone.

Correct Answer:

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