Question
Juan owns a toy company that makes both electric bicycles and gaming consoles. The electric bicycles and gaming consoles use the same computer chips. Unfortunately, the only factory in the world that makes these computer chips was damaged in a hurricane and cannot produce more. Fortunately, Juan has a small stockpile of the computer chips, but not enough to continue making both electric bicycles and gaming consoles. Juan chooses to stop making the electric bicycles and to use the remaining computer chips to make only gaming consoles. Juan’s decision to use the few computer chips that he has left to make gaming consoles instead of electric bicycles best illustrates which economic concept?(1 point)
Responses
Command economy decision-making
Production possibilities frontier
Economic surplus
Distribution of scarce resources
Responses
Command economy decision-making
Production possibilities frontier
Economic surplus
Distribution of scarce resources
Answers
GPT-4o mini
Juan's decision to use the remaining computer chips to make gaming consoles instead of electric bicycles best illustrates the concept of **distribution of scarce resources**. This decision reflects how limited resources are allocated to maximize production in response to market demand, in this case prioritizing gaming consoles over electric bicycles.