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Question

Production Possibilities (alternative)

ABCDEF
Hot pockets 15129620
Eggs0611151820
According to the production possibilities curve in Table, a combination of 3 Hot Pockets and 15 Eggs:

A
Is attainable and it involves an efficient use of society's resources
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B
Is attainable but involves the unemployment or inefficient use of some of society's resources
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C
Is not attainable given society's current resources and technology
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D
May be produced only if the production possibilities curve shifts inward
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Solution

The correct option is B Is attainable but involves the unemployment or inefficient use of some of society's resources

When economy produces 15 eggs, it has the required resources to produce 6 hot pockets. So if it produces less hot pockets with the same production of eggs, the economy has to under utilize the supplied resources.


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