Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 2: 11 (page 43)

What does a production possibilities frontier

illustrate?

Short Answer

Expert verified

The production possibility frontier shows, when resources are limited, the various production possibilities of two goods.

Step by step solution

01

Step 1

The production possibility frontier depicts the numerous combinations of two items that can be produced in the economy given a particular amount of resources and technology.

The marginal rate of transformation (MRT) is the slope of the PPF, which illustrates how much good 'x'must be sacrificed in order to achieve1unit of good'y'.

02

Step 2

The PPF depicts the cost of producing two commodities.

Because resources are finite in society and tradeoff is necessary, if we want to expand the production of one good, we must sacrifice some production of another.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Use this information to answer the following 4 questions: Marie has a weekly budget of \(24, which she likes to spend on magazines and pies. If the price of a magazine is \)4 each, what is the maximum number of magazines she could buy in a week?

What is Marie’s opportunity cost of purchasing a pie?

Is the economic model of decision-making intended as a literal description of how individuals, firms, and the governments actually make decisions?

Draw Marie’s budget constraint with pies on the horizontal axis and magazines on the vertical axis. What is the slope of the budget constraint?

Would a research study on the effects of soft drink consumption on children’s cognitive development be a positive or normative statement?
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free