Answer to Question #175291 in Microeconomics for Jerika A Cepeda

Question

Whenever a nation is producing on its PPF, that nation will be using all of its available resources.

 a. True b. False

Answer 1

a. true

When a country produces on the Production Possibility Frontier, it means that it is efficiently using all of its available resources and achieving maximum output possible with those resources. This implies that the available resources are being used to their full potential.

The production probability frontier shows that production has or should have limits. To be effective, an economy must determine what combination of goods and services it can and should produce.