A friend says that the economy will produce inside the PPF curve (like pt E below) since we in the economy value
saving, or for some other reason. You say this is incorrect. Why? Use precise economic logic in your answer.

Posted Date: 9/26/2012 11:29:41 PM | Location : United States

Ask an Expert

Related Discussions:- Production Possibilities Frontier, Assignment Help, Ask Question on Production Possibilities Frontier, Get Answer, Expert's Help, Production Possibilities Frontier Discussions

Write discussion on Production Possibilities Frontier
Your posts are moderated

Write your message here..

Related Questions

Factors affecting the price elasticity of demand, Q. Discuss about the fact... Q. Discuss about the factors affecting the Price Elasticity of Demand. a. Availability of Substitute- Availability of close substitute is important determinants of elasticity of

Objective of empirically analyses, The aim of this paper is to observe and ... The aim of this paper is to observe and interpret the correlations between oil price changes, and changes to key macroeconomic indicators. From this we will be able to observe if t

What is the marginal product, What is the marginal product? The margina... What is the marginal product? The marginal product of an input is the extra quantity of output which is generated by using one more unit of which input. Marginal product of

Money banking and finance, The analysis of the speculative demand for money... The analysis of the speculative demand for money reveals the importance of the level of wealth. Explain this assertion in detail

What are the changes in the exchange rate, What are the Changes in the exch... What are the Changes in the exchange rate Assume that United States is our home country and that current euro exchange rate in direct notation is SD= 1.5 (euro/USD). In indirec

What are the advantages of capitalism, The benefits of capitalism are that ... The benefits of capitalism are that the governments have limited control over other business, which lets business compete.

Money multiplier and credit multiplier, why is credit multiplier lower than... why is credit multiplier lower than money multiplier

Bonds are more attractive to investors, Briefly explain if you agree with t... Briefly explain if you agree with the following statement: If interest rates rise, bonds become more attractive to investors, so bond prices rise. Therefore, when the interest rat

find the nash equilibria for all possible parameter, Two animals are fight... Two animals are fighting over a prey. The prey is worth v to each animal. The cost of fighting is c1 for the first animal (player 1) and c2 for the second animal (player 2). If the

Cost to heat our homes and businesses, Use the laws of supply and demand to... Use the laws of supply and demand to explain why the cost to heat our homes and businesses goes up in the winter time. Be sure to explain your answer fully. At least two paragraphs