Question 1 Report
The table below shows the various possible combinations of military and civilian goods produced by a country, using the available resources and technology. Use the table to answer the questions that follow.
Military goods (in toons) | Civilian goods (in toons) |
0 | 200 |
20 | 160 |
40 | 120 |
60 | 80 |
80 | 40 |
100 | 0 |
(a) Draw the production possibility curve (PPC).
(b) Indicate points S and K at which production is not feasible.
(c) Indicate points M and N at which resources are not efficiently utilized.
(d) What does the downward slope of the PPC indicate?
(e) Why is production not feasible at points S and K?