/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Q11 What does a production possibili... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 2: Q11 (page 43)

What does a production possibilities frontier illustrate ?

Short Answer

Expert verified

Production Possibility curve illustrates product combinations that can be produced by an economy, with given resources & technology.

Step by step solution

01

 Concept 

In this world, resources are limited with alternative uses and there are unlimited wants and needs to be satisfied. Production possibility curve is a concept used to study resource allocation.

02

Detailed Explanation 

PPC concept is based on following assumptions

  • 91影视 are given fixed, and technology is constant
  • All points on PPC show product combinations, done through full & efficient utilisation of resources.
  • The economy produces only two goods.

PPC shows combinations of two goods, that an economy can produce with given fixed resources & constant technology.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

What are the similarities between a consumer鈥檚 budget constraint and society鈥檚 production possibilities frontier, not just graphically but analytically?

Individuals may not act in the rational, calculating way described by the economic model of decision making, measuring utility and costs at the margin, but can you make a case that they behave approximately that way?

Explain why scarcity leads to tradeoffs.

What are four responses to the claim that people should not behave in the way described in this chapter?

Suppose Alphonso鈥檚 town raises the price of bus

tickets from \(0.50 to \)1 and the price of burgers rises

from \(2 to \)4. Why is the opportunity cost of bus tickets

unchanged? Suppose Alphonso鈥檚 weekly spending

money increases from \(10 to \)20. How is his budget

constraint affected from all three changes? Explain.
See all solutions

Recommended explanations on Economics Textbooks

Taxation Economics

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.