Nations will have different production possibilities frontiers because of which characteristic?

Question

Quizplus · Accepted Answer

The production possibilities frontier represents the maximum output that a country can produce given its resources and technology. Factor endowments such as natural resources, labor, and capital are key determinants of a country's production possibilities frontier. Countries with abundant resources of certain types will have an advantage in producing goods that require those resources. For example, a country with a large supply of iron ore may be able to produce steel more efficiently than a country without that resource. Therefore, the differences in factor endowments are the main reason why countries have different production possibilities frontiers.

Nations Will Have Different Production Possibilities Frontiers Because of Which