Suppose Germany produces only smartphones and tablets. The resources that are used in the production of these two goods are not specialized-that is, the same set of resources is equally useful in producing both tablets and smartphones. The shape of Germany's production possibilities frontier (PPF) should reflect the fact that as Germany produces more tablets and fewer smartphones, the opportunity cost of producing each additional tablet The following graphs show two possible PPFS for Germany's economy: a straight-line PPF (PPF;) and a bowed-out PPF (PPF2). Graph 1 Graph 2 PPF1 PPF. 2 TABLETS TABLETS Based on the previous description, the trade-off Germany faces between producing tablets and smartphones is best represented by SMARTPHONES SMARTPHONES
Suppose Germany produces only smartphones and tablets. The resources that are used in the production of these two goods are not specialized-that is, the same set of resources is equally useful in producing both tablets and smartphones. The shape of Germany's production possibilities frontier (PPF) should reflect the fact that as Germany produces more tablets and fewer smartphones, the opportunity cost of producing each additional tablet The following graphs show two possible PPFS for Germany's economy: a straight-line PPF (PPF;) and a bowed-out PPF (PPF2). Graph 1 Graph 2 PPF1 PPF. 2 TABLETS TABLETS Based on the previous description, the trade-off Germany faces between producing tablets and smartphones is best represented by SMARTPHONES SMARTPHONES
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Can you help answer the two questions below from the attached image:
The shape of Germany's production possibilities frontier (
Based on the previous description, the trade-off Germany faces between producing tablets and smartphones is best represented by Graph 1 or Graph 2 .
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