Bundle: Microeconomics, 13th + Aplia, 1 Term Printed Access Card
Bundle: Microeconomics, 13th + Aplia, 1 Term Printed Access Card
13th Edition
ISBN: 9781337742535
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 20, Problem 1QP
To determine

The position of world’s production possibility frontier.

Expert Solution & Answer
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Explanation of Solution

Most probably, the world’s position in the production possibility frontier is below the frontier. This is because there is a decrease in world’s production and consumption due to the trade restrictive measures adopted by the nations, such as quota and tariff. The nations produce and consume more if there are no restrictions. This is because they would not get any benefit with trade restrictive measures.

Economics Concept Introduction

Production possibilities frontier: PPF refers to the different combinations of goods and services that can be produced efficiently with the given resources by a firm.

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