Asked by Carina Campos on Apr 26, 2024
Verified
One of the controversies surrounding the United States' energy markets is the trade-off between energy production and clean air.Assuming clean air has value,the United States will be on its production possibility frontier if and only if:
A) resources used to produce clean air and energy are not being fully used.
B) pollution is eliminated.
C) the price of energy is relatively low.
D) resources used to produce clean air and energy are being fully used.
Production Possibility Frontier
This graph illustrates the maximum outputs for two different goods achievable with certain inputs and existing production technology.
Clean Air
The condition of the air when it is free from pollutants, contaminants, and other harmful substances, often a focus of environmental protection efforts.
- Acquire knowledge on the theory of productive efficiency and the apportionment of resources.
- Identify the effects of operation at varying positions on or within the Production Possibility Frontier (PPF) with respect to effectiveness, unemployment, and the exploitation of resources.
Verified Answer
ZK
Zybrea KnightMay 02, 2024
Final Answer :
D
Explanation :
The production possibility frontier (PPF) represents the maximum combination of goods or services that can be produced with full and efficient use of resources. In this context, being on the PPF means that the resources used to produce clean air and energy are being fully and efficiently utilized, indicating an optimal trade-off between the two. Choices A, B, and C do not necessarily imply efficient resource use or an optimal trade-off.
Learning Objectives
- Acquire knowledge on the theory of productive efficiency and the apportionment of resources.
- Identify the effects of operation at varying positions on or within the Production Possibility Frontier (PPF) with respect to effectiveness, unemployment, and the exploitation of resources.