Question

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

Answer 1

C. Producing on

Answer 2

C.

Answer 3

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.