Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Question
A tropical creates a shortage in the item needed in the production of goos B. Explain how this would affect the production possibilities curve.
select one
PPF shifts outwards
Move to a point inside the PPF
Move outwards on good A axis only
Move inwards on good B axis only
Move inward on Good A axis only
Move outwards on Good Baxis only
Expert Solution
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Step 1
Production Possibilities Curve (PPC) is the locus of combinations of two goods a nation produces by a given level of resources and technology.
Two goods, i.e., A and B has been produced.
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