On the basis of the following production possibilities tables for two countries, North Cantina and South Cantina. North Cantina Production Possibilities
A B C D E F
Capital Goods 5 4 3 2 1 0
Consumer Goods 0 10 18 24 28 30
South Cantina Production Possibilities
A B C D E F
Capital Goods 5 4 3 2 1 0
Consumer Goods 0 8 15 21 25 27
Refer to the tables. Suppose that resources in North Cantina and South Cantina are identical in quantity and quality. We can conclude that:.
A. North Cantina has better technology than South Cantina in producing consumer goods but not capital goods.
B. South Cantina has better technology than North Cantina in producing both capital and consumer goods.
C. North Cantina has better technology than South Cantina in producing both capital and consumer goods.
D. North Cantina is growing more rapidly than South Cantina.

A

Explanation:

The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.  

The PPC is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.  

To determine which country has a better technology in production, the opportunity cost has to be calculated. The country with the lower opportunity cost has the better technology

At point B for North Cantina:

The opportunity  cost of producing one 4 units of capital good = 10/4 = 2.5 units of consumer goods

The opportunity  cost of producing 10 units of consumer good = 4/10 = 0.4 units of capital goods

At point B for South Cantina

The opportunity  cost of producing one 4 units of capital good = 8/4 = 2units of consumer goods

The opportunity  cost of producing 8 units of consumer good = 4/8 = 0.5 units of capital goods

South Cantina has a lower opportunity cost in the production of capital goods while North Cantina has a lower opportunity cost in the production of consumer goods

answer; /// the above statement is (true);

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know