Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point...
Question:
Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point directly to the left of it. Assuming that the PPF has not shifted, this could be due to
a. a gain of resources
b. a loss of resources
c. technological improvement in the production of both goods
d. a new law that interferes with productive efficiency
The Production Possibility Frontier (PPF):
In microeconomics, the production possibility frontier shows the combinations of two goods that the economy can produce given its resources and technology. It is a downward sloping concave curve portraying more of one good can be produced only by sacrificing some units of the other good.
Answer and Explanation: 1
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View this answerAssuming that the PPF has not shifted, this could be due to d. a new law that interferes with productive efficiency.
A point to the left of the PPF...
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Production Possibilities Curve: Definition & Examples
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Chapter 11 / Lesson 28
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Understand what the production possibilities curve is, and learn how to construct and interpret a production possibilities curve along with the example.
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