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What may enable an economy to consume a combination of goods outside its production possibility frontier?
Wiki User
∙ 13y ago
An economy(country) can consume outside of its PPF if its starts to trade with Another Country that also produces all goods.
Since these countries may have different comparative advantages in production, they will focus on producing more of one good and export the excess, i.e that which is not consumed or wanted in the own country. The terms of trade will then determine how much of the other good the country can import for the price of the exported good but you will then end up in a situation where you consume more goods than an economy can produce itself.
Wiki User
∙ 13y ago
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Which is a problem for the production of public goods?
The possibility of free riders, a situation where some individuals in a population either consume more than their fair share of a common resource, or pay less than their fair share of the cost of a common resource, is a problem for the production of public goods.
Each society determines who will consume what is produced based on?
Combination of social values and goals.
Why must the government go to business firms to buy resources for production?
Governments do not produce, they consume. However they have to deal with business to acquire the resources they need to operate.
How equilibrium income in a closed economy is determined?
There is equilibrium in a closed economy (that which doesn't encourage in international trade), when there is the circular flow of income between House-holds & firms, where the house-holds own the factors of production, which is given to firms, which in return gives factors of income for their services. the firm uses fatcors of production to produce goods & services, whereas house-holds consume goods & services using factors of production. Here NI=NO=NE.
How do you find Average Propensity to consume?
Average Propensity to Consume = Total Consumption divided by Total income
Which is a problem for the production of public goods?
The possibility of free riders, a situation where some individuals in a population either consume more than their fair share of a common resource, or pay less than their fair share of the cost of a common resource, is a problem for the production of public goods.
What is the result of a production?
A product that you will be able to use or consume.
What combination of foods do Canadians consume?
they consumse mostly what they grow
Who is the largest consumer of diamond in the world?
Industries consume about 75% of the diamond industry's production, annually.
What is the main point of photosynthesis?
To turn solar energy into food that the plant can consume.
What is food quantity production?
Quantity food production is the amount of food you consume each day.
Are cars consumers?
Yes, cars are consumers. They consume raw materials during production and fuel for the engine.
Each society determines who will consume what is produced based on?
Combination of social values and goals.
Is the process for making Hershey's chocolate intermitten or continuous production?
Due to the high demand for Hershey's chocolate product, production is continuous. Hershey's provides ready to consume chocolate, cooking chocolate and cocoa products.
Why must the government go to business firms to buy resources for production?
Governments do not produce, they consume. However they have to deal with business to acquire the resources they need to operate.
How are humans innovating ways to produce and consume material resources?
Give two examples of production and two examples of consumptions habits humans have related to material resouces.
How would trading posts affect crusoe's consumption possibilities frontier?
Trading posts would expand Crusoe's consumption possibilities frontier by providing him with access to a greater variety of goods and resources that he can trade for. This would allow Crusoe to consume a more diverse range of products and potentially increase his overall standard of living by trading goods or services with other individuals.
