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11 Dec 2019
The production possibilities curve illustrates the basic principle that:
(i) the production of more of any one good will, in time, require smaller and smaller sacrifices of other goods.
(ii) an economy will automatically seek the level of output at which all of its resources are employed.
(iii) an economy's capacity to produce increases in proportion to its population size.
(iv) if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced.
The production possibilities curve illustrates the basic principle that:
(i) the production of more of any one good will, in time, require smaller and smaller sacrifices of other goods.
(ii) an economy will automatically seek the level of output at which all of its resources are employed.
(iii) an economy's capacity to produce increases in proportion to its population size.
(iv) if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced.
Jeffrey
JD Candidate at Stanford Law School30 Jun 2020
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