Question

The economy is currently on its production possibilities frontier (PPF). A politician says that it is possible to get more of everything---more infrastructure, more schools, more national defense, more spending on social programs, and so on. The politician is Group of answer choices correct if he is assuming a PPF that does not change. incorrect if he is assuming a rightward-shifting PPF. correct if he is assuming a rightward-shifting PPF.

Answer 1

The politician is incorrect if he is assuming a rightward-shifting PPF.

Step-by-step explanation:

The politician is incorrect if he is assuming a rightward-shifting PPF.

A production possibilities frontier (PPF) represents the maximum amount of goods and services that an economy can produce given its resources and technology. It shows the different combinations of two goods that can be produced efficiently.

If the PPF is static and does not change, then the economy is already producing at its maximum potential. In this case, it is not possible to get more of everything without sacrificing the production of other goods. However, if the PPF shifts outward, it indicates that the economy is growing and can produce more of all goods.

Answer 2

The politician's claim is only correct if the assumption is that the production possibilities frontier will shift outward due to factors such as increased efficiency, resources, or technological advancements, which would enable the economy to produce more of everything.

Step-by-step explanation:

The question concerns whether a politician's claim that it is possible to obtain 'more of everything' in an economy currently at its production possibilities frontier (PPF) is correct or incorrect. This depends on the assumptions regarding the PPF. If the PPF remains unchanged, the politician would be incorrect because the PPF represents the maximum efficient output levels for goods and services given the available resources and technology. However, if the politician is assuming that the PPF can shift outwards—due to factors such as increased efficiency, resources, or technological advancement—then the claim could be correct.

Over time, as an economy grows, the PPF can shift outward. The reasons for this include an increase in available resources, such as labor and capital, and improvements in technology. Therefore, with an outward-shifting PPF, the economy could indeed produce more of all goods.