Suppose China produces only trucks and cars. The resources that are used in the production of these two goods are not specialized

Suppose China produces only trucks and cars. The resources that are used in the production of these two goods are not specialized—that is, the same set of resources is equally useful in producing each good.
The following graphs show two possible prodution possibilities frontiers (PPFs) for China’s economy: a straight-line PPF (PPF1) and a bowed-out
PPF (PPF2).

3-1

Asked on November 12, 2016 in No Category.
Add Comment
0 Answer(s)
  • Votes
  • Oldest

Your Answer

By posting your answer, you agree to the privacy policy and terms of service.