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Macroeconomics 16th Edition by Campbell R. McConnell Test bank

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       D) tend to generate a slower growth rate.
      
 



 
 
152)       Production possibilities (alternatives)

 
 
  A B C D E F
Capital goods 5 4 3 2 1 0
Consumer goods 0 5 9 12 14 15


 Refer to the above table. A total output of 3 units of capital goods and 4 units of consumer goods:
 
      
       A) is irrelevant because the economy is capable of producing a larger total output.     
       B) will result in the maximum rate of growth available to this economy.
       C) would involve an inefficient use of the economy's scarce resources.
       D) is unobtainable in this economy.
      
 



 
 
153)       Production possibilities (alternatives)

 
 
  A B C D E F
Capital goods 5 4 3 2 1 0
Consumer goods 0 5 9 12 14 15


 Refer to the above table. For this economy to produce a total output of 3 units of capital goods and 13 units of consumer goods it must:
 
      
       A) achieve economic growth. 
       B) use its resources more efficiently than the data in the table now indicate.
       C) allocate its available resources most efficiently among alternative uses.
       D) achieve the full employment of available resources.
      
 



 
 
154)       Production possibilities tables for two countries, North Cantina and South Cantina:
 North Cantina Production possibilities (alternatives)

 
 
  A B C D E F
Capital goods 5 4 3 2 1 0
Consumer goods 0 10 18 24 28 30

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