Introduction to Economics 1 Deneme Sınavı Sorusu #712349
I. Scarcity,
II. Efficiency,
III. Tradeoffs and Opportunity Cost
IV. Economic Growth
V. Future Prospects
Suppose that a firm that employs 250 workers and have two assembly lines producing two goods uses Production Possibilities Frontier (PDF) in order to make decision about production. For which of the parameter(s) above can PDF be used to illustrate?
I |
II |
I, II, III and IV |
I, II, III and V |
II, III, IV and V |
The PPF is a very useful analytical tool to illustrate the basic economic concepts such as scarcity, efficiency, tradeoffs and opportunity cost. It could even be used to illustrate economic growth, another frequently used economic concept, in the form of an expansion in the production possibility set of an economy. Future prospects are related to the decision made using PDF. For this reason the correct answer is “C”.
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