This topic contains a solution. Click here to go to the answer

Author Question: How does the production possibilities frontier illustrate production efficiency? What will be an ... (Read 98 times)

OSWALD

  • Hero Member
  • *****
  • Posts: 580
How does the production possibilities frontier illustrate production efficiency?
 
  What will be an ideal response?

Question 2

If policymakers implement an expansionary fiscal policy but do not take into account the potential for crowding out, the new equilibrium level of GDP is likely to
 
  A) be at potential GDP.
  B) be below potential GDP.
  C) be above potential GDP.
  D) There is insufficient information given here to draw a conclusion.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

cassie_ragen

  • Sr. Member
  • ****
  • Posts: 347
Answer to Question 1

The combinations of outputs that lie on the PPF illustrate the concept of production efficiency. These points are the maximum production points possible and are attained only by producing the goods and services at the lowest possible cost. Any point inside the frontier reflects production where one or both outputs may be increased without decreasing the other output level. Clearly, such points cannot be production efficient.

Answer to Question 2

B




OSWALD

  • Member
  • Posts: 580
Reply 2 on: Jun 29, 2018
Gracias!


covalentbond

  • Member
  • Posts: 336
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

For a complete list of videos, visit our video library