Asked by Brianna Prater on Apr 25, 2024
Suppose a nation is currently producing at a point inside its production possibilities frontier. We know that
A) the nation is producing beyond its capacity, so inflation will occur.
B) the nation is not using all available resources or is using inferior technology or both.
C) the nation is producing an efficient combination of goods.
D) there will be a large opportunity cost if the nation tries to increase production of any good.
Production Possibilities Frontier
A curve depicting all maximum output possibilities for two goods, given a set of inputs and technology.
Available Resources
The assets, materials, and inputs that are available for use in the production of goods and services.
Inferior Technology
Technology that is less efficient or effective compared to the available alternatives.
- Recognize the significance of the production possibilities frontier (PPF) and its implications.
Learning Objectives
- Recognize the significance of the production possibilities frontier (PPF) and its implications.