- A Production Possibility Curve would tell you what products could be produced. Creating new and advanced technology would cause the PPC to shift to the left, human capital would make the PPC to shift to the right.
- I think the best way to determine if we are making a good rational decision is by determining if the marginal benefit exceeds the marginal cost.
- When a company makes up their mind to specialize, they can rise in production. Reason being is because companies choose to specialize based on what they have. Companies trade based on what they specialize in. If companies did not specialize they would not be able to produce a lot of that product.
5. I feel ok about this standard. I don't have two questions but I have one question. What would probably cause a curve to shift outwards twice?
William,
ReplyDelete#1 is incorrect; please review information on the PPC
#2 correct
#3 correct
#4???
#5 The PPC curve would shift outwards if the company continued to make improvements in capital or technology that would cause it to produce more goods more efficiently