Chapter 2: Q11 (page 43)
What does a production possibilities frontier illustrate ?
Short Answer
Production Possibility curve illustrates product combinations that can be produced by an economy, with given resources & technology.
Chapter 2: Q11 (page 43)
What does a production possibilities frontier illustrate ?
Production Possibility curve illustrates product combinations that can be produced by an economy, with given resources & technology.
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Get started for freeWhat are four responses to the claim that people should not behave in the way described in this chapter?
It is clear that productive inefficiency is a waste since resources are used in a way that produces less goods and services than a nation is capable of. Why is allocative inefficiency also wasteful?
Do economists have any particular expertise at making normative arguments? In other words, they have expertise at making positive statements (i.e., what will happen) about some economic policy, for example, but
do they have special expertise to judge whether or not
the policy should be undertaken?
What is productive efficiency? Allocative efficiency?
Marie has a weekly budget of \(24, which she
likes to spend on magazines and pies.
If the price of a pie is \)12, what is the maximum number of pie she could buy in a week?
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