Question

Suppose that in a year an American worker can produce 80 shirts or 20 computers and a Chinese worker can produce 60 shirts or 20 computers. There are 1 million workers in each country. Use the blue line (circle symbol) to graph the production possibilities frontier (PPF) for the United States, and use the green line (triangle symbol) to graph the production possibilities frontier for China. What is the production possibilities frontier (PPF) for the United States?

1) 80 shirts
2) 20 computers
3) Cannot be determined

Answer 1

The production possibilities frontier (PPF) for the United States is 80 shirts.

Step-by-step explanation:

The production possibilities frontier (PPF) for the United States can be graphed using the blue line (circle symbol). The PPF shows the maximum amount that the United States can produce given its limited resources and technology. In this case, the United States can produce 80 shirts or 20 computers. Therefore, the production possibilities frontier for the United States is 1) 80 shirts.