In the four-quadrant diagram of the specific factors model,the graph in the upper right quadrant is a country's
A) labor allocation constraint.
B) production possibility frontier.
C) production function for food.
D) production function for cloth.
E) labor supply curve.

Question

Quizplus · Accepted Answer

The upper right quadrant of the specific factors model diagram represents the production possibility frontier (PPF) which shows the maximum combinations of two goods that a country can produce given its resources and technology. This graph shows the tradeoff between producing two goods in an economy with fixed resources. Therefore, the correct answer is B, production possibility frontier.

In the Four-Quadrant Diagram of the Specific Factors Model,the Graph