Refer to the above tables. Suppose that resources in North Cantina and South Cantina are identical in quantity and quality. We can conclude that:
A) South Cantina has better technology than North Cantina in producing both capital and consumer goods.
B) North Cantina has better technology than South Cantina in producing both capital and consumer goods.
C) North Cantina is growing more rapidly than South Cantina.
D) North Cantina has better technology than South Cantina in producing consumer goods.
156) Refer to the table below. According to the production possibilities schedule for the economy which produces two products, a combination of four tanks and 650 autos is: Production Possibilities
| Production Possibilities | ||||||
| Product | A | B | C | D | E | F |
| Tanks | 0 | 1 | 2 | 3 | 4 | 5 |
| Autos | 1000 | 950 | 850 | 650 | 350 | 0 |
A) attainable, but involves an efficient use of society's resources.
B) attainable, but would not be in the best interests of a strong national defence.
C) not attainable because it is not listed in the schedule.
D) not attainable because society does not have sufficient resources to produce this combination.
157) Assume that a change in government policy results in the increased production of both consumer goods and investment goods. It can be concluded that:
A) the economy was suffering from unemployment and/or the inefficient use of resources before the policy change.
B) the economy's production possibilities curve has been shifted to the left as a result of the policy decision.
C) this economy's production possibilities curve is convex (bowed inward) as viewed from the origin.
D) the law of increasing opportunity costs does not apply in this society.
158) Refer to the diagram. This economy will experience unemployment if it produces at point:
