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Asked by Pauline

How does a production possibilities curve illustrate how efficient an economy is?
17 years ago

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Answered by economyst
By itself, a ppc does'nt illustrate efficiency. In a two-good world (which is how PPCs are typically drawn), the PPC represents the maximum production of the two goods, and assumes that inputs are used efficiently. To illustrate efficiency, you need more information.
17 years ago

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