Question

Thr production in an economy Will take place on PPF and never inside a PPF

Answer 1

Answer:

Production Possibility Frontier (PPF)

By ANDREW BLOOMENTHAL

Reviewed By BRIAN BARNIER

Updated May 27, 2020

What Is the Production Possibility Frontier (PPF)?

In business analysis, the production possibility frontier (PPF) is a curve that illustrates the variations in the amounts that can be produced of two products if both depend upon the same finite resource for their manufacture.

PPF also plays a crucial role in economics. It can be used to demonstrate the point that any nation's economy reaches its greatest level of efficiency when it produces only what it is best qualified to produce and trades with other nations for the rest of what it needs.