Westonci.ca is your go-to source for answers, with a community ready to provide accurate and timely information. Get immediate answers to your questions from a wide network of experienced professionals on our Q&A platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.
Sagot :
To understand the shape of the Production Possibility Frontier (PPF) when resources are better suited toward the production of one good than another, let's first review what a PPF represents:
The PPF is a curve that illustrates the combinations of two goods that a country can produce, given its resources and technology. If all resources are fully and efficiently utilized, the PPF shows the maximum potential output for the pair of goods.
### Scenario: Resources Better Suited for One Good
When resources are better suited toward the production of one good than another, this typically means that resources are specialized. For example, certain workers might be highly skilled at producing good A but not as effective at producing good B. Likewise, some land might be perfect for growing crops but not as effective for raising livestock.
### Explanation:
1. Increasing Opportunity Costs:
- If resources are better suited to producing one good, reallocating them to produce the other good will lead to higher opportunity costs.
- Initially, if you start shifting resources from producing the good they are better suited for to the other good, only those with the least comparative disadvantage get moved first, which keeps opportunity costs low.
- As you continue to allocate more resources away, you start using less and less efficient resources, which dramatically increases opportunity costs.
2. Bowed Outward Shape:
- Due to the increasing opportunity costs, the PPF for these two goods is not a straight line.
- Instead, it is bowed outward (concave from the origin). This shape indicates that the opportunity cost of producing each additional unit of a good increases as more resources are reallocated toward its production.
### Answer:
Given the explanation, the PPF for these two goods, when resources are better suited toward the production of one good than another, is:
- b. bowed outward.
This reflects the principle that opportunity costs increase as one shifts resources from the production of one good to the other.
The PPF is a curve that illustrates the combinations of two goods that a country can produce, given its resources and technology. If all resources are fully and efficiently utilized, the PPF shows the maximum potential output for the pair of goods.
### Scenario: Resources Better Suited for One Good
When resources are better suited toward the production of one good than another, this typically means that resources are specialized. For example, certain workers might be highly skilled at producing good A but not as effective at producing good B. Likewise, some land might be perfect for growing crops but not as effective for raising livestock.
### Explanation:
1. Increasing Opportunity Costs:
- If resources are better suited to producing one good, reallocating them to produce the other good will lead to higher opportunity costs.
- Initially, if you start shifting resources from producing the good they are better suited for to the other good, only those with the least comparative disadvantage get moved first, which keeps opportunity costs low.
- As you continue to allocate more resources away, you start using less and less efficient resources, which dramatically increases opportunity costs.
2. Bowed Outward Shape:
- Due to the increasing opportunity costs, the PPF for these two goods is not a straight line.
- Instead, it is bowed outward (concave from the origin). This shape indicates that the opportunity cost of producing each additional unit of a good increases as more resources are reallocated toward its production.
### Answer:
Given the explanation, the PPF for these two goods, when resources are better suited toward the production of one good than another, is:
- b. bowed outward.
This reflects the principle that opportunity costs increase as one shifts resources from the production of one good to the other.
Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.