If a country directs all of its resources into producing one item, it can produce a maximum of either 2,000 computers or 10,000 books. The country can also produce a combination of these two goods, but the opportunity cost of producing either item will remain the same. They also have several beneficial trade partners. The residents of the country want to consume a combination of 1,500 computers and 8,000 books, assuming that no economic growth will occur in the near future. Which of the following is a viable option to achieve the resident's desired consumption?(1 point)

Question

If a country directs all of its resources into producing one item, it can produce a maximum of either 2,000 computers or 10,000 books. The country can also produce a combination of these two goods, but the opportunity cost of producing either item will remain the same. They also have several beneficial trade partners. The residents of the country want to consume a combination of 1,500 computers and 8,000 books, assuming that no economic growth will occur in the near future. Which of the following is a viable option to achieve the resident's desired consumption?(1 point)
Responses

The country could achieve this through either domestic production or trade.
The country could achieve this through either domestic production or trade.

The country could only achieve this through domestic production.
The country could only achieve this through domestic production.

The country could only achieve this through trade.
The country could only achieve this through trade.

The country could not achieve this by any means.

GPT-4o mini · Answer

To determine the viable option for achieving the residents' desired consumption of 1,500 computers and 8,000 books, let's first analyze the country's production possibilities.

The country can produce:

A maximum of 2,000 computers (if no books are produced) or
A maximum of 10,000 books (if no computers are produced).

The opportunity cost remains constant, which indicates a linear trade-off between the two goods.

If the country wants to produce 1,500 computers, we need to calculate how many books can it produce at that level of computer production.

Since producing 1,000 books costs 200 computers (as 10,000 books require 2,000 computers):

The production of 1 computer costs 5 books (10,000 books / 2,000 computers = 5 books per computer).

Calculating the opportunity cost when producing 1,500 computers:

1,500 computers would then cost 1,500 * 5 = 7,500 books.

Thus, if the country produces 1,500 computers, it would produce 2,500 books (10,000 - 7,500 = 2,500 books), which is not sufficient to reach the desired consumption of 8,000 books.

This means that the country cannot solely rely on domestic production to achieve the desired consumption level.

Now, let’s consider trade options. Since the country can trade with beneficial partners, it can potentially acquire additional books by trading some of its computers.

However, based on the calculations, the country is limited by its production capacity, which restricts it from reaching the desired combination through domestic production alone. If it decides to trade, it can achieve the consumption goals by trading its surplus of computers for the necessary books.

Taking all this into account:

The correct response is:
The country could achieve this through either domestic production or trade.

(Note: In this case, "domestic production" alone cannot meet consumption needs, but it implies trade is also a critical component for achieving the desired consumption.)