Production Possibility Curve:
A curve that represents how much products and services an economy is able to manufacture if they use their entire set of resources and technology is called the production possibility curve. It is abbreviated as PPF or PPC.
Answer and Explanation: 1
This statement is False.
Explanation: The improvement in the technology of cupcake production will cause the PPC to rotate outward. Therefore, only the production of cupcakes will rise while that of croissants will remain the same.
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fromChapter 11 / Lesson 28
Understand what the production possibilities curve is, and learn how to construct and interpret a production possibilities curve along with the example.