The production possibilities frontier (PPF) illustrates the combinations of goods that society can consume when trading with other producers.
When it is said that trade between nations can make both sides of the trade better off, this means that all citizens in each nation will benefit.
A production possibilities frontier (PPF) is characterized by increasing opportunity costs when
the PPF is bowed outward
the PPF is a straight line
increasing opportunity costs do not occur with PPF's
the PPF is bowed inward
Answer 1. False
Explanation: The production possibilities frontier (PPF) illustrates the combinations of goods that an economy can produce with the help of its given resources and technology level.
Answer 2. False
Explanation: Trade benefits the overall wellbeing of people in both nations. However, each and every citizen may not be directly benefitted from trade.
Answer 3. Option a. the PPF is bowed outward
Explanation: When opportunity cost is constant, the PPF is a straight line. When opportunity cost is decreasing, the PPF is bowed inward. Lastly, when the opportunity cost is increasing PPF is bowed outward
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