Question

Assume that an economy produces only two goods, pizza and wings, and that it is producing on its production possibilities frontier (PPF). If the economy can only produce two goods, which of the following ways would allow the economy to produce even more pizza?
a. growth in labor force.
b. improved wing making technology.
c. improved pizza-making technology.
d. some workers move to a country that produces only pizza.
e. more efficient use of existing production assets.

Answer 1

Answer:

Growth in labor force

Improved pizza-making technology

Explanation:

Production possibilities frontier (PPF) is the various ways or possible ways (combination) whereby two goods that can be produced in a certain period of time under the conditions of a given state of technology and well equipped resources. Productive efficiency of a goods is the condition where the maximum output is produced with the already laid down resources and technology available. It is said to be a curve that depicts the maximum quantity of one good that can be produced for each maximum number or quantity of another good produced.