A country produces books and video games exclusively. In the same time it takes to produce one video game, the country could produce 4 books. If the country only focused on one of the goods to produce, the maximum amount the country can produce is either 200 video games or 800 books. They can create a combination of the two goods, but the opportunity cost for production will remain the same. If the country would like to consume a combination of 100 video games and 1,400 books, which of the following is true?(1 point)

Question

Responses

The country might consume 100 video games and 1,400 books following trade.
The country might consume 100 video games and 1,400 books following trade.

It is impossible for the country to consume a combination of 100 video games and 1,400 books.
It is impossible for the country to consume a combination of 100 video games and 1,400 books.

The country can produce 600 more books and 100 fewer video games itself, or it can engage in trade.
The country can produce 600 more books and 100 fewer video games itself, or it can engage in trade.

This is only possible if the country produces 600 more books and 100 fewer video games itself.

Answer 1

To determine whether the country can consume a combination of 100 video games and 1,400 books, let's first analyze its production capabilities based on the information provided.

1. Production Possibilities:

   • The maximum production is 200 video games or 800 books.
   • The trade-off is that for every 1 video game produced, the country can produce 4 books. Therefore, if they are producing 1 video game, they are giving up the production of 4 books.

2. Calculate the opportunity cost:

   • If the country produces 100 video games, it gives up producing books.
   • Since the maximum production of books is 800, if the country produces 100 video games, the equation for books produced is: \[ \text{Books} = 800 - (4 \times \text{video games produced}) \] \[ = 800 - (4 \times 100) \] \[ = 800 - 400 = 400 \text{ books} \]

3. Combining production:

   • At 100 video games, the maximum number of books that can be produced is 400.
   • The proposed consumption amount is for 100 video games and 1,400 books, which exceeds the maximum books produced (400).

Thus, the combination of 100 video games and 1,400 books is not possible within the country's production capabilities.

Given this analysis, the correct response is:

It is impossible for the country to consume a combination of 100 video games and 1,400 books.