Question

Assume that the economy of Sunland can produce a maximum of 300 products. Determine the status of the production possibilities listed below:

60 cars & 45 TVs
150 cars & 50 TVs
What is the status of these production possibilities in Sunland?

A) Attainable and efficient
B) Attainable but inefficient
C) Unattainable
D) Attainable but there is no information on efficiency

Answer 1

The status of the production possibilities listed below: 1) 60 cars & 45 TVs: Attainable and efficient. 2) 150 cars & 50 TVs: Attainable but inefficient.

Step-by-step explanation:

The status of the production possibilities listed below:

1. 60 cars & 45 TVs: Attainable and efficient
2. 150 cars & 50 TVs: Attainable but inefficient

When considering the production possibilities curve, the first combination is attainable and efficient because it falls below the maximum production limit of 300 products. The second combination is attainable but inefficient because it also falls within the production limit, but does not maximize production efficiency.