Figure 1 shows the PPF for an economy that produces Food and Clothes. Which of the following production bundles is feasible and efficient? A) 50 Food and 360 Clothes B) 170 Food and 144 Clothes C) 320 Food and 48 Clothes D) 440 Food and 144 Clothes
Figure 1 shows the PPF for an economy that produces Food and Clothes. Which of the following production bundles is feasible and efficient? A) 50 Food and 360 Clothes B) 170 Food and 144 Clothes C) 320 Food and 48 Clothes D) 440 Food and 144 Clothes
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Figure 1 shows the
A) 50 Food and 360 Clothes
B) 170 Food and 144 Clothes
C) 320 Food and 48 Clothes
D) 440 Food and 144 Clothes
Expert Solution
Step 1
The point which lies on the production frontier path is feasible as well as efficient.
In this question, the production frontier path is a straight line. So all the points on this line are feasible and efficient.
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