MC Qu 72 Use the following table to answer Use the following

MC Qu. 72 Use the following table to answer... Use the following table to answer the question below Dave\'s Production Possibilities Schedule Pounds of Green Beans 0 20 40 60 80 Pounds of Corm 160 120 80 40 0 Dave\'s production possibilities schedule demonstrates that Multiple Choice he does not face scarcity he does face scarcit)y

Solution

Correct ans is :
He does face scarcity.

Scarcity is the limitation of supply in relation to the demand.

And we know that the human demands are unlimited. So in any case when there is limit on supply there is scarcity.

It is so because as the production possibility Schedule shows that after using all his resources only on the production of Green Beans, he can only produce 80 pouds of green beans, while using all his resources only on the production of corn he can only produce 160 pounds of corn. It means he has some limited amount of resources so he does face scarcity.

Other options are incorrect -

He does not face scarcity - He does not face scarcity, if he could produce infinity amount of both the goods. But as given in his production possibility schedule, he cannot so this option is incorrect.

He can produce as much as he want - this option is also incorrect because he could maximum produce 80 pounds of green beans or 120 pounds of cron.

He can produce unlmited... - This option is also incorrect as he can maximum produce only 80 pounds of green beans even when he gives up all units of cron.