Question

What are the two conditions required for a society to operate at a point on its Production Possibility Frontier (PPF)?

a) Efficient allocation of resources and technological advancement
b) Full employment of resources and economic growth
c) Low unemployment and political stability
d) Resource abundance and international trade

Answer 1

Efficient allocation of resources and technological advancement are the two conditions required for a society to operate at a point on its Production Possibility Frontier (PPF).

Step-by-step explanation:

In order for a society to operate at a point on its Production Possibility Frontier (PPF), two conditions are required:

1. Efficient allocation of resources: This means that resources are used in the most productive way possible, maximizing output and minimizing waste.
2. Technological advancement: Improvements in technology can increase the level of production with given resources, allowing a society to produce more with the same amount of resources.

Both of these conditions are important for a society to achieve maximum production and efficiency.