Exhibit 1, which of the following statements is (are) correct?(x) A choice to produce 1,400 chairs and 50

Exhibit 1, which of the following statements is (are) correct?

(x) A choice to produce 1,400 chairs and 50

tables would reflect an efficient amount of production.

(y) If this economy was producing 80 tables and 800 chairs, then simply

reducing unemployment would allow this economy to produce 80 tables

and 850 chairs.

(z) If some capital is idle and some laborers are unemployed then this

economy would produce less than 80 tables if it was producing 800 chairs.

A. (x), (y) and (z)

B. (x) and (y), only

C. (x) and (z), only

D. (y) and (z), only

E. (z) only

Use Exhibit 1. Which of the following statements is (are) correct?

(x) The opportunity cost of the first 50 tables is 400 chairs and the opportunity

cost of the first 800 chairs is 20 tables.

(y) If the economy produces 80 tables and 800 chairs instead of 50 tables and

1,400 chairs, then the opportunity cost of the 30 additional tables is 600 chairs.

(z) The opportunity cost of the 200th chair is equal to 1/40th of a table and the opportunity cost of the 30th table is more than 8 chairs but less than 10 chairs.

A. (x), (y) and (z)

B. (x) and (y), only

C. (x) and (z), only

D. (y) and (z), only

E. (x) only

Exhibit 1

Production Possibilities

Tables