A large government encounters a production possibilities frontier essentially the same as one faced by a business firm.

Question

Quizplus · Accepted Answer

The production possibilities frontier is a concept that applies to both businesses and governments, representing the maximum amount of goods and services that can be produced with the available resources. Therefore, a large government may face a production possibilities frontier that is essentially the same as that of a business firm.

A Large Government Encounters a Production Possibilities Frontier Essentially the Same