Question

The Production Possiblilties Curve shows that when an eceonomy is acting at its full petential it will be poducing on a point just beyond the Curve. ture or false. Why?

Answer 1

False. Acting at its full potential, it will be producing on the curve. Below/to the left of the curve is an inefficient use of resources, and above/to the right of the curve is not possible without an increase in resources (like technological advances).