Asked by ricardo caraballo on Jun 01, 2024
Verified
Production possibilities frontiers cannot be used to illustrate trade-offs.
Production Possibilities
A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, technology, etc.).
Trade-offs
Situations where making a decision to gain something entails losing something else, typically requiring a compromise or balancing act.
- Understand the concept and application of Production Possibilities Frontiers (PPF) in illustrating trade-offs and opportunity costs.
Verified Answer
MC
Maryame ChayatJun 06, 2024
Final Answer :
False
Explanation :
Production possibilities frontiers (PPFs) are specifically designed to illustrate the trade-offs between different choices in the allocation of resources, showing the maximum possible output combinations of two goods or services that an economy can achieve when all resources are fully and efficiently utilized.
Learning Objectives
- Understand the concept and application of Production Possibilities Frontiers (PPF) in illustrating trade-offs and opportunity costs.
Related questions
A Production Possibilities Frontier Is a Graph That Shows the ...
The Production Possibility Frontier Is Used to Illustrate the Concept ...
(Scenario: Linear Production Possibility Frontier)Use Scenario: Linear Production Possibility Frontier ...
The Prairie Dog Has Always Been Considered a Problem for ...
Draw a Production Possibilities Frontier Showing Increasing Opportunity Cost of ...