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Multiple Choice
In the context of a production possibilities frontier (PPF) for sandwiches and salads, at which point will Al be producing the most equal amounts of both goods?
A
At the point where all resources are used to produce only salads
B
At the point where all resources are used to produce only sandwiches
C
At the point where the quantities of sandwiches and salads produced are the same
D
At the point where the opportunity cost of producing sandwiches is zero
Verified step by step guidance
1
Understand that the Production Possibilities Frontier (PPF) represents all possible combinations of two goods that can be produced using all available resources efficiently.
Identify that producing the most equal amounts of both goods means finding the point on the PPF where the quantity of sandwiches equals the quantity of salads.
Recognize that the points where all resources are used to produce only one good (either all sandwiches or all salads) correspond to the endpoints of the PPF, not equal production.
Note that the opportunity cost of producing sandwiches being zero would imply no trade-off, which is generally not the case on a PPF and does not relate to equal production quantities.
Therefore, the point where the quantities of sandwiches and salads produced are the same is the point on the PPF where the production is balanced, representing the most equal amounts of both goods.