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Economics - Financial Markets
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Sam produces 4 balloon rides and 5 boat rides an hour. Sam could not produce more balloon rights without producing fewer boat rides. Sam is:_______his production possibilities frontier. A. producing outside B. moving along C. producing on D. producing inside
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C. Producing on
C.
moving along (B)....The reason is Production Posibility frontier shows the total number of goods and services that can be produced ny an econmy with the given resources keeping technology constant. S thus here Sam has a total resource of 9 ....if he wants to inscrease production of one the other needs to be produced less, given technology is constant. So its moving along the PPF curve. |dw:1328346074137:dw|
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