What is a production possibilities frontier? What do points along the frontier represent? What do points inside and outside the frontier represent?
What will be an ideal response?
A production possibilities frontier is a curve showing the maximum attainable combinations of two products that may be produced with available resources and current technology. Points along a production possibilities frontier are attainable with the resources available and are efficient. Points inside the frontier are attainable but inefficient. Points outside the frontier are unattainable.
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Using the supply and demand curve for wheat above, sketch the supply and demand curves demonstrating the effect of an increase in disposable consumer incomes
How does each curve shift (if at all) to the increase in income? What does the shift do to equilibrium price and quantity?
Human capital is a term that characterizes
A. firms that sell their products to customers directly. B. individuals with a set of skills that they rent to employers. C. individuals who buy skills from the companies they work for. D. the number of workers in a company who are productive.
What distinguishes short-run cost analysis from long-run cost analysis for a profit-maximizing firm in the short run?
a. The size of the factory is fixed. b. There are no fixed costs. c. Output is not variable. d. The number of workers used to produce the firm's product is fixed.
Which of the following goods is nondiminishable?
A. City street B. National parks C. The use of a lighthouse D. A free concert