The PPF of a country will be skewed toward the good that:
A) uses its scarce factor intensively.
B) uses its abundant factor intensively.
C) uses its intensive factor abundantly.
D) does not use its intensive factor abundantly.

Question

Quizplus · Accepted Answer

The PPF of a country will be skewed toward the good that uses its abundant factor intensively. This is because the country can produce more of this good without having to sacrifice producing other goods due to scarcity of the abundant factor. On the other hand, producing a good that uses scarce factor intensively would require sacrificing the production of other goods, which would result in a less efficient use of the country's resources. Therefore, producing the good that uses the abundant factor intensively would allow the country to produce more overall and efficiently allocate its resources.

The PPF of a Country Will Be Skewed Toward the Good