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Question
the table above presents the production possibilities frontier for a nation. using the information in the table, moving from possibility c to b means that
4 units of capital goods are given up to get 55 units of consumption goods.
2 units of capital goods are given up to get 10 additional units of consumption goods.
2 units of capital goods are given up to get 55 additional units of consumption goods.
4 units of capital goods are given up to get 10 additional units of consumption goods.
4 units of capital goods are given up to get 45 units of consumption goods.
Production - possibility frontier shows trade - offs. Moving from C to B, capital goods decrease from 4 to 2 (2 units given up), and assuming consumption goods increase from 45 (at C) to 55 (if we assume a logical progression), 10 additional units of consumption goods are obtained.
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2 units of capital goods are given up to get 10 additional units of consumption goods.