The table above shows the PPF of an island community. Choose the best statement. A. Suppose that

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The table above shows the PPF of an island community. Choose the best statement.

A.  Suppose that this community produces 3 pounds of fish and 20 pounds of berries. If it decides to gather more berries, it faces a trade off.

B.  When this community produces 4 pounds of fish and 12 pounds of berries it faces a trade off, but it is inefficient.

C. Suppose that this community produces 5 pounds of fish and 0 pounds of berries. If it decides to gather some berries, it will get a free lunch.

D. If this community produces 3 pounds of fish and 22 pounds of berries, production is efficient but to produce more fish it faces a trade off.

Fish Possibility (pounds) Berries (pounds) A and 40 and 36 and 2 30 and 22 12 and and o

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Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

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