Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market.
-The production possibilities curve of a low income country lies outside the production possibilities curve of a high income country.

Question

​Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market. 
-The production possibilities curve of a low income country lies outside the production possibilities curve of a high income country.​

Quizplus · Accepted Answer

The production possibilities curve of a low-income country typically lies inside the production possibilities curve of a high-income country, indicating that the high-income country can produce more goods and services with its resources due to factors like better technology, more capital, and higher efficiency.

​Figure 53

Figure 53