Asked by Louis Padilla on Apr 30, 2024
Verified
An economy cannot produce at a point outside of its production possibilities curve because human economic wants are insatiable.
Production Possibilities Curve
A graph that shows the different quantities of two goods that an economy can produce with fixed resources and technology.
Human Economic Wants
Desires that require resources to satisfy, emphasizing the economic aspect of needs and desires.
- Elucidate the function of limited resources within the realm of economics and their connection to the production possibilities frontier.
Verified Answer
SA
Sierra AlbisMay 01, 2024
Final Answer :
False
Explanation :
An economy cannot produce at a point outside of its production possibilities curve because it represents the maximum combination of goods and services that can be produced given current resources and technology, not because human wants are insatiable.
Learning Objectives
- Elucidate the function of limited resources within the realm of economics and their connection to the production possibilities frontier.