1. Specialization and production possibilitiesSuppose Poland produces only tablets and smartphones. 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 both smartphones and tablets.The shape of Poland's production possibilities frontier (PPF) should reflect the fact that as Poland produces more smartphones and fewer tablets, theopportunity cost of producing each additional smartphoneThe following graphs show two possible PPFS for Poland's economy: a straight line PPF (PPF1) and a bowed-out PPF (PPF2).TABLETSPPF₁Graph 1SMARTPHONES?TABLETSPPF2Graph 2SMARTPHONES(?) The shape of Poland's production possibilities frontier (PPF) should reflect the fact that as Poland produces more smartphones and fewer tablets, theopportunity cost of producing each additional smartphoneThe following graphs show two possible PPFS for Poland's economy: a straight-line PPF (PPF1) and a bowed-out PPF (PPF2).TABLETSPPF₁Graph 1SMARTPHONES?TABLETSPPF₂Graph 2SMARTPHONES(?)Based on the previous description, the trade-off Poland faces between producing smartphones and tablets is best represented by

Production Possibility Frontier (PPF) illustrates the combination of two goods that a nation can…

Suppose Poland produces only tablets and smartphones. 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 both smartphones and tablets. The shape of Poland's production possibilities frontier (PPF) should reflect the fact that as Poland produces more smartphones and fewer tablets, the opportunity cost of producing each additional smartphone The following graphs show two possible PPFS for Poland's economy: a straightyline PPF (PPF1) and a bowed-out PPF (PPF2).

Suppose Poland produces only tablets and smartphones. 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 both smartphones and tablets. The shape of Poland's production possibilities frontier (PPF) should reflect the fact that as Poland produces more smartphones and fewer tablets, the opportunity cost of producing each additional smartphone The following graphs show two possible PPFS for Poland's economy: a straightyline PPF (PPF1) and a bowed-out PPF (PPF2).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The slope of the production possibilities frontier is called
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