TPLE CHOICE Questions (Weight 3 Points each) Choose best answer. 81. The product
ID: 1140543 • Letter: T
Question
TPLE CHOICE Questions (Weight 3 Points each) Choose best answer. 81. The production possibilities Frontier (PPF) curve illustrates the basic principle that an economy will automatically seek that level of output at which all of its resources are employed an economy's capacity to produce increases in proportion to its population size b) e production of more of any one good will require smaller and smaller sacrifices of other goods c) th d) if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced.Explanation / Answer
d) if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced.
PPF shows different combination of two goods that an economy can produce by utililising all its resources. It is downward sloping, and concve to the origin which implies increasing opportunity cost. This means that as more of one good is to be produced increasing amount of another good has to be given up.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.