Asked by Nancy Nguyen on Jun 30, 2024
Verified
Consider a production possibility frontier for Italy.If in 2016 Italy's resources are not being fully utilized,Italy will be somewhere _____ of its production possibility frontier.
A) inside
B) outside
C) near the bottom
D) near the top
Production Possibility Frontier
A curve depicting all maximum output possibilities for two goods, given a set of inputs and production technology, illustrating the concept of opportunity cost.
- Understand the consequences of manufacturing at different locations on or within the Production Possibility Frontier (PPF) regarding productivity, joblessness, and the use of resources.
- Elucidate the importance of every point situated on, within, and outside the production possibilities curve.
Verified Answer
TW
Timisiha WalkerJul 01, 2024
Final Answer :
A
Explanation :
When Italy's resources are not being fully utilized, it indicates that they are not able to produce at their maximum capacity. This, in turn, means that their production level is below their production possibility frontier. Therefore, the correct choice is inside the production possibility frontier.
Learning Objectives
- Understand the consequences of manufacturing at different locations on or within the Production Possibility Frontier (PPF) regarding productivity, joblessness, and the use of resources.
- Elucidate the importance of every point situated on, within, and outside the production possibilities curve.
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