Reference no: EM131570727

The table below shows the production possibilities schedule for an economy.

Production Alternatives Capital goods per periodConsumer goods per period A040B136C228D316E40

1. Putting capital goods per period on the horizontal axis and consumer goods per period on the vertical axis, graph the production possibilities curve for the economy.
2. If the economy is producing at alternative B, what is the opportunity cost to it of producing at alternative C instead?
3. If the economy is producing at alternative C, what is the opportunity cost to it of producing at alternative D instead?
4. Is it possible for this economy to produce 30 units of consumer goods per period while producing 1 unit of capital goods? Would this combination of goods represent efficient or inefficient production? Explain.
5. Which point, B or C, would lead to higher economic growth? Explain your answer.