Question

PPF with 2 factors vs. just one factor A. PPF with 2 factors

B. PPF with one factor
C. Both are equally good
D. None of the above

Answer 1

A PPF (Production Possibility Frontier) represents the different combinations of two goods that can be produced given a fixed amount of resources and technology. It shows the tradeoff between producing one good versus another. Option B

Step-by-step explanation:

A PPF (Production Possibility Frontier) represents the different combinations of two goods that can be produced given a fixed amount of resources and technology.

It shows the tradeoff between producing one good versus another. In this case, a PPF with two factors represents the production possibilities when using two factors of production, while a PPF with one factor represents the production possibilities when using only one factor.

The correct answer would be B. PPF with one factor