Question

If the economy is on the production possibilities frontier, which of the following might allow the economy to increase its capacity?
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a
Increase consumption and decrease government spending
b
Decrease exports
c
Decrease imports
d
Increase government spending

Answer 1

Answer:

The Correct Answer is A

Increase consumption and decrease government spending

Explanation:

In macroeconomics, the PPF is the tip at which a nation's economy is most efficiently manufacturing its multiple services and goods, therefore designating its sources in the best means possible.

In a market report, the production possibility frontier is a curve representing the different amounts of two commodities that can be created both depend on the same measurable resources.