Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
What's does a production possibility frontier illustrates?
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The production possibilities frontier(PPF) displays the productive capacity of a nation. A production possibility curve even displays the basic economic issue of a country having limited resources being faced by opportunity costs and shortages in the economy. Choosing one option over the other is called opportunity cost. Economists use PPF to demonstrate the barter that take place due to scarcity.
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