Questions
Test:ch2_practice
Single choice
Part 1Harry produces 88 balloon rides and 88 boat rides an hour. Harry could not produce more balloon rides without producing fewer boat rides. Is Harry producing on his production possibilities frontier? Part 1Harry is _______ his production possibilities frontier. A. producing inside B. producing on C. moving along D. producing outside
Options
A.A. producing inside
B.B. producing on
C.C. moving along
D.D. producing outside
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Step-by-Step Analysis
First, let's restate the key setup: Harry produces 88 balloon rides and 88 boat rides per hour, and he cannot increase balloon rides without reducing boat rides. This describes a specific relationship between two goods when resources are fully utilized and not wasted.
Option A: 'producing inside' would mean Harry is operating with some unused resources or inefficiency—he could increase production of at least one good without sacrificing the other. ......Login to view full explanationLog in for full answers
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