Question

A certain production possibilities frontier shows production possibilities for two goods, jewelry and clothing. Which of the following concepts cannot be illustrated by this model? a. the flow of dollars between sellers of jewelry and clothing and buyers of jewelry and clothingb. the tradeoff between production of jewelry and production of clothing c. the opportunity cost of clothing in terms of jewelry d. the effect of economic growth on production possibilities involving jewelry and clothing

Answer 1

Answer:

A

Explanation:

The production possibilities frontier shows the various combinations of the two separate goods that can be produce by limited resources the two products need for production their production. The optimum production is represented by the varied production of both item along the line which is usually represented by an arc. Inefficient production is within the area inside the curve while future production is beyond the curve which cannot be achieved at the moment but can be achieved when a change like new technology is used in the production of the products such as new machine that improves number of the products that can be produced.

The other options can be illustrated by the except A (the flow of dollars between sellers of jewelry and the clothing).  

Answer 2

Answer:

Correct option is A

“The flow of dollars between sellers of jewelry and clothing and buyers of jewelry and clothing” is the correct option  

Explanation

It is a curve which shows various combination for the amount of two goods among which they can be produced with in the given available resources. Thus, it shows that the maximum amount of output is produced with the help of given resource.