A table showing the potential outcomes arising from the choices made by decision makers is called:

• A. a budget constraint
• B. a production possibilities frontier
• C. a demand schedule
• D. a payoff matrix

Answer: (D)

Verified step by step guidance

1. Understand the key terms given in the problem: a budget constraint, a production possibilities frontier, a demand schedule, and a payoff matrix.
2. Recall that a budget constraint shows the combinations of goods a consumer can afford given their income and prices, typically represented as a line or curve.
3. Recognize that a production possibilities frontier (PPF) illustrates the maximum output combinations of two goods that an economy can produce given resources and technology.
4. Know that a demand schedule is a table showing the quantity of a good consumers are willing to buy at different prices.
5. Identify that a payoff matrix is a table that displays the potential outcomes (payoffs) for decision makers based on the choices they make, which matches the description in the problem.