FIGURE 33- 2
-Refer to Figure 33- 2. Each of the two diagrams is illustrating .

Question

Quizplus · Accepted Answer

Each diagram is illustrating the production possibilities boundary, which shows the various combinations of two goods that a country can produce given its resources and technology. The curve is downward sloping because there is an opportunity cost of producing one good in terms of the other, due to the scarcity of resources. Therefore, production at a point inside the curve is inefficient, while production outside the curve is currently unattainable given the resources available.

FIGURE 33- 2 -Refer to Figure 33- 2. Each of the Two Diagrams