1. Which of the following trade-offs does the production possibilities frontier illustrate? 2. Refer to Figure 2-5. This economy cannot currently produce 70 washers and 70 dryers b... 1. Which of the following trade-offs does the production possibilities frontier illustrate? 2. Refer to Figure 2-5. This economy cannot currently produce 70 washers and 70 dryers because:
Understand the Problem
The questions are asking about economic concepts related to production possibilities and efficient use of resources, particularly in the context of trade-offs and production capacity. The first question focuses on trade-offs illustrated by production possibility frontiers, and the second question assesses understanding of production constraints and resources.
Answer
1. b. Once an economy has reached the efficient points, the only way of getting more of one good is to get less of the other. 2. c. It does not have the resources and technology to produce that level of output.
- The PPF illustrates that once an economy has reached its efficient points on the frontier, the only way to get more of one good is to produce less of the other good. 2. This economy cannot currently produce 70 washers and 70 dryers because it does not have the necessary resources and technology to produce that level of output.
Answer for screen readers
- The PPF illustrates that once an economy has reached its efficient points on the frontier, the only way to get more of one good is to produce less of the other good. 2. This economy cannot currently produce 70 washers and 70 dryers because it does not have the necessary resources and technology to produce that level of output.
More Information
The production possibilities frontier (PPF) is a curve depicting the maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors. The PPF curve shows that producing more of one good requires producing less of another due to limited resources, highlighting opportunity costs.
Tips
A common mistake is to assume that inefficiency or resource underutilization is the reason for the inability to produce at a certain point. However, it can also be due to limitations in available resources or technology.
Sources
- Test 1 Review: ECON 2301_Spring 2017_West Loop Center - learning.hccs.edu
- Figure 2-3 Refer to Figure 2-3 - chegg.com
- Refer to figure 2 5 it is not possible for this - coursehero.com
