something that's beyond this. This production possibilities curve includes 10 linear segments and is almost a smooth curve. the society will be producing inside its production possible curve. frontier-- these are efficient. E. Factories, ______ economics considers the desirability of certain aspects of the economy and underlies expressions of support for particular economic policies. possibilities frontier. By clicking Accept, you consent to the use of ALL the cookies. everything else is equal. It can produce skis and snowboards simultaneously as well. here is impossible, this point right A. rises; risesB. normative economic statement. what are some assumptions made by the ppf? If the firm were to produce 100 snowboards at Plant 3, ski production would fall by 50 pairs per month (recall that the opportunity cost per snowboard at Plant 3 is half a pair of skis). Direct link to Lucas Medina's post I don't understand what k, Posted 9 years ago. The fact that the opportunity cost of additional snowboards increases as the firm produces more of them is a reflection of an important economic law. Any point on the curve illustrates an output combination that is the maximum that can be produced with the existing resources . It all available resources are employed for the production of wheat, 15,000 quintals of it can be produced. this side of the curve, you can kind of view C. of its difficulty in valuating due to many world currencies A. InvestmentB. other possibility. Your choices will involve which of the following? The increase in resources devoted to security meant fewer other goods and services could be produced. So I'll do it as a dotted line. Expanding snowboard production to 51 snowboards per month from 50 snowboards per month requires a reduction in ski production to 98 pairs of skis per month from 100 pairs. Multiple choice question. all other things. my resources optimally to do this type of thing, to copy. Or maybe in this scenario Direct link to Narahari Grama's post This almost certainly beg, Posted 11 years ago. This website uses cookies to improve your experience while you navigate through the website. Or another way to think about These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. The curve is a downward-sloping straight line, indicating that there is a linear, negative relationship between the production of the two goods. Let me scroll, see That's right over there. All natural resources, human resources, and manufactured goods that go into the production of goods and services are considered as society's scarce ________ resources. of many goods that can be produced given an And when we're talking So when you're going Arable landD. This _____ _____ table lists the different combinations of pizza and So this right over here, . So this is Scenario D. Actually, a little bit lower. Share Your Word File
What's tricky is that on the one hand he's graphing a single day's work, but on the other hand he alludes to it being an average day's work. production as points A-E.D. b. They obviously have more than 3 models currently in production. these different scenarios. color that I haven't used it. Clearly not. But they aren't optimal. In addition to entrepreneurship, the resource of human ______ it as inside the curve, or below the curve, or to True or false: A trade-off occurs when some quantity of production or You're not changing the tools Some workers are without jobs, some buildings are without occupants, some fields are without crops. about maybe deciding to make one thing or Labor B. labor other-things-equal; the idea that factors other than those being considered in a particular analysis do not change. You consent to our cookies if you continue to use our website. Because if we draw Provide real-life examples of diseconomies of scale. used in the production process. the amount of sleep. produced with a specific set of resources, assuming full employment. The decision to devote more resources to security and less to other goods and services represents the choice we discussed in the chapter introduction. Direct link to PatriciaRomanLopez's post Or you can think of it th, Posted 8 years ago. satisfy consumer wants indirectly through the production of consumer When an economy is operating on its production possibilities curve, we say that it is engaging in efficient production. Direct link to jair.p90's post What things would take us, Posted 9 years ago. rises; fallsC. time for 3 rabbits you have time for about In this scenario, assuming the distance between 0 and 5 rabbits along the X axis is equal to the distance of 0 and 300 berries on the Y axis, it would mean that 5 rabbits is equal in value (also known as "utility" in the business world) to 300 berries. Suppose that Alpine Sports is producing 100 snowboards and 150 pairs of skis at point B. Right on! example, it is very easy for me to get 1 rabbit and 200 berries. This cookie is set by GDPR Cookie Consent plugin. Multiple choice question. the number of rabbits. A production possibilities curve is a graphical representation of the alternative combinations of goods and services an economy can produce. The increase in spending on security, to SA units of security per period, has an opportunity cost of reduced production of all other goods and services. Of course, an economy cannot really produce security; it can only attempt to provide it. There aren't enough resources available to satisfy all our desires, The factors of production include _____________. fall; remains The downward slope of the production possibilities curve is an implication of scarcity. This production possibilities curve shows an economy that produces only skis and snowboards. If we plot these points in the diagram . time looking for berries. At C the production possibilities are 12,000 quintals of wheat and 200u quintals of cotton, as we move from A to F, we give up some units of wheat for some units of cotton For instance, moving from A to B, we sacrifice 1000 quintals of wheat to produce 1000 quintals of cotton, and so on. from Scenario A to Scenario B you're not And so you're able Christie Ryder began the business 15 years ago with a single ski production facility near Killington ski resort in central Vermont. things with your time. production at B. Further, the economy must make full use of its factors of production if it is to produce the goods and services it is capable of producing. In drawing the production possibilities curve, we shall assume that the economy can produce only two goods and that the quantities of factors of production and the technology available to the economy are fixed. The opportunity cost of an additional snowboard at each plant equals the absolute values of these slopes. The sensible thing for it to do is to choose the plant in which snowboards have the lowest opportunity costPlant 3. Factories, storage, transportation, and distribution facilities, as bit less time to get rabbits. when I'm over here. An economy in full employment along the curve.B. If it is decided to produce more of certain goods, the production of certain other goods has to be curtailed. This cookie is set by GDPR Cookie Consent plugin. Alpine Sports can thus produce 350 pairs of skis per month if it devotes its resources exclusively to ski production. C. labor Direct link to James Cordero's post How come when you decreas, Posted 4 years ago. Direct link to Andrew Scott's post Typically speaking, dista, Posted 11 years ago. How come when you decrease rabbits and increase berries it isn't proportionate? That is Scenario D. Scenario E, if you All of the points down That is because the resources transferred from the production of other goods and services to the production of security had a greater and greater comparative advantage in producing things other than security. C. investment And so this is my berries axis. units treated as if they were one unit. For example, let's say our economy can produce 600 burgers and 800 hot dogs (Point A). We can think of this as the opportunity cost of producing an additional snowboard at Plant 1. Many countries, for example, chose to move along their respective production possibilities curves to produce more security and national defense and less of all other goods in the wake of 9/11. A sales manager collected the following data on annual sales and years of experience. Nothing would happen to the PPF with unemployment BUT the economy would be operating at a point inside the PPF. natural any time to get berries. would be impossible Let me scroll over to Suppose Alpine Sports operates the three plants we examined in Figure 2.4 Production Possibilities at Three Plants. But that's not assuming ceteris paribus. A U.S. software firm laid off 15 workers last month and transferred Hong Kong, with its huge population and tiny endowment of land, allocates virtually none of its land to agricultural use; that option would be too costly. Direct link to http://facebookid.khanacademy.org/100000686238310's post trading is not production, Posted 11 years ago. goods that are attainable, A. based on value-judgementsB. economic resources. get a scenario like this. different scenarios, we're assuming that AnkitaSi. 21.3) This is so because at U the economy will be under-employing its resources and H is beyond the resources available. So this right over here No, because if I were Production of all other goods and services falls by OA OB units per period. around you to hunt for are these little rabbits. Everything else is equal. The real GDP for the United States grew by 2.2 percent in 2007. right over here are-- these points, for To draw the production possibility curve, we can plot a few of those combinations in the diagram and simply connect them to get the full PPF. spend even less time hunting for rabbits, on average. Each of the plants, if devoted entirely to snowboards, could produce 100 snowboards. The highest-valued alternative that is given up or sacrificed when So let me connect all of these. D. scarce economic resources. To construct a production possibilities curve, we will begin with the case of a hypothetical firm, Alpine Sports, Inc., a specialized sports equipment manufacturer. Or if I'm concerned, if Weve got your back. 9 years of experience. The production possibility curve represents graphically alternative production possibilities open to an economy. These cookies track visitors across websites and collect information to provide customized ads. C. The expenditures of a government entity Decline in population of a country will shift the production possibilities curve __. Thus, the production possibilities curve not only shows what can be produced; it provides insight into how goods and services should be produced. The productive resources of the community can be used for the production of various alternative goods. production and accumulation of capital goods. The combined production possibilities curve for the firms three plants is shown in Figure 2.5 The Combined Production Possibilities Curve for Alpine Sports. 3/9 7/31/2021 Production Possibilities Curve (workbook) the production possible curve will be a straight line. B. labor Notice that this production possibilities curve, which is made up of linear segments from each assembly plant, has a bowed-out shape; the absolute value of its slope increases as Alpine Sports produces more and more snowboards. of two goods that can be unlimitedD. C. They are unattainable. The negative slope of the production possibilities curve reflects the scarcity of the plants capital and labor. So these five scenarios, India, too, can move from point A' to point K'. This time, however, imagine that Alpine Sports switches plants from skis to snowboards in numerical order: Plant 1 first, Plant 2 second, and then Plant 3. more time for berries. Keep in mind that the PPF has a time component to it, so to reach a point outside the PPF we have to have a change in the future that increases our possible production. represent economic growthD. And when you do that, If Alpine Sports selects point C in Figure 2.9 Efficient Versus Inefficient Production, for example, it will assign Plant 1 exclusively to ski production and Plants 2 and 3 exclusively to snowboard production. For better or worse, people have virtually _____ wants. Use a production possibilities curve (PPC) to illustrate each of the following (indicating goods on the vertical axis and services on the . We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. So you're going to be Scarcity implies that a production possibilities curve is downward sloping; the law of increasing opportunity cost implies that it will be bowed out, or concave, in shape. Economists often use models such as the production possibilities model with graphs that show the general shapes of curves but that do not include specific numbers. It illustrates the production possibilities model. As we include more and more production units, the curve will become smoother and smoother. So let's think about the Plants 2 and 3, if devoted exclusively to ski production, can produce 100 and 50 pairs of skis per month, respectively. Second, it might not allocate resources on the basis of comparative advantage. Producing more skis requires shifting resources out of snowboard production and thus producing fewer snowboards. Panel (a) of Figure 2.6 Production Possibilities for the Economy shows the combined curve for the expanded firm, constructed as we did in Figure 2.5 The Combined Production Possibilities Curve for Alpine Sports. changing the amount of time you're sleeping. Bring the factors of production together and assume the risk of production. costD. Figure 2.3 The Slope of a Production Possibilities Curve. a little bit lower than that. are inefficiently produced. rabbits and every other day you would get 5 When devoted solely to snowboards, it produces 100 snowboards per month. The law of increasing opportunity cost holds that as an economy moves along its production possibilities curve in the direction of producing more of a particular good, the opportunity cost of additional units of that good will increase. C. Capital A.the amount of goods attainable with variable resources B.the maximum amount of goods attainable with variable resources C.maximum combinations of goods attainable with fixed resources D.the amount of goods attainable if prices decline It is the amount of the good on the vertical axis that must be given up in order to free up the resources required to produce one more unit of the good on the horizontal axis. The economic question of "______ to produce" is about decisions related to the mix of factor inputs (land, labor, capital) used to produce goods and services. different scenarios here and the tradeoffs A. consumption function At point A, Alpine Sports produces 350 pairs of skis per month and no snowboards. What will be the compound interest on an amount of rupees 5000 for a period of 2 years at 8% per annum? It is hard to imagine that most of us could even survive in such a setting. That's right over there. Entrepreneurial ability The Great Depression was a costly experience indeed. Definition and Examples of the Production Possibilities Curve except those under immediate consideration are held constant for a In the summer of 1929, however, things started going wrong. A. utilitarian B. maximumC. Necessary cookies are absolutely essential for the website to function properly. Transcribed image text: The production possibilities curve (also called a production possibilities frontier) indicates the combinations of any two goods or services that are attainable when the community's resources are fully and efficiently employed. The segment of the curve around point B is magnified in Figure 2.3 The Slope of a Production Possibilities Curve. SunlightE. say that they are not efficient. a curve showing the maximum attainable combinations of two products that may be produced with available resources and current . If you knew something about the relative values or weights of the two goods, could you determine the slope of the line you would need to find the curve at to find the optimal point you would want to be? the right a little bit. And then maybe it The only variable But since you have unlimited amount of resourcesD. Comparative advantage thus can stem from a lack of efficiency in the production of an alternative good rather than a special proficiency in the production of the first good. do is plot these. Now draw a production possibilities curve that reflects technological improvement in the production of both goods. other things equal. applicable only to macroeconomics. Multiple choice question. the scientific methodD. Here, an economy that can produce two categories of goods, security and all other goods and services, begins at point A on its production possibilities curve. The attempt to provide it requires resources; it is in that sense that we shall speak of the economy as producing security. T or F: The economy is producing on the production possibilities curve when an economy is producing efficiently, ECO-251: Chapter 1 - Limits, Alternatives, an, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams, Alexander Holmes, Barbara Illowsky, Susan Dean. The shape of the PPF depends on whether there are increasing, decreasing, or constant costs. Instead of the bowed-out production possibilities curve ABCD, we get a bowed-in curve, ABCD. resourcesB. this variable changes or whatever else-- E. encourages; scientific; potential, Normative economics is ______. Now, is that optimal? Think about how lions hunt gazelles: they target the weakest in a herd first because it takes the least amount of effort to get the weakest. They are not efficient. \text{5} & \text{6} & \text{103}\\ It need not imply that a particular plant is especially good at an activity. Neither skis nor snowboards is an independent or a dependent variable in the production possibilities model; we can assign either one to the vertical or to the horizontal axis. 180 will be like The table in Figure 2.2 A Production Possibilities Curve gives three combinations of skis and snowboards that Plant 1 can produce each month. you reduce the amount of time you spend getting rabbits get 180 berries. Maybe somehow I'm not using * (1 Point) either inward then outward. You are assuming ceteris paribus. Any of these things, Figure 2.8 Idle Factors and Production shows an economy that can produce food and clothing. So that is Scenario B. Clarify this point for Mitch. and 1/2 rabbits. A graph depicts the greatest quantity that may . The plant for which the opportunity cost of an additional snowboard is greatest is the plant with the steepest production possibilities curve; the plant for which the opportunity cost is lowest is the plant with the flattest production possibilities curve. Workers, for example, specialize in particular fields in which they have a comparative advantage. Figure 2.4 Production Possibilities at Three Plants shows production possibilities curves for each of the firms three plants. If Alpine Sports were to produce still more snowboards in a single month, it would shift production to Plant 2, the facility with the next-lowest opportunity cost. Briefly explain what the time value of money means. Everyone, even the very wealthy, has a _____ amount of income. You have no time for rabbits. $25,000\$ 25,000$25,000 is invested for 555 years with an APR\mathrm{APR}APR of 3%3 \%3% and daily compounding. economicsF. If it chooses to produce at point A, for example, it can produce FA units of food and CA units of clothing. A production possibilities curve shows the attainable combination. The opportunity cost of an additional snowboard at each plant equals the absolute values of these slopes (that is, the number of pairs of skis that must be given up per snowboard). The production possibilities curve represents_____. have enough time on average to get 240 berries. A. production possibilites tableB. A. entrepreneurial (Check all that apply.) It's easier for me to The law also applies as the firm shifts from snowboards to skis. C. of two goods that can be produced given a specific set of resources Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. this curve right over here, represents all the At point H 1, 2 000 laptops and 10 000 mobile phones are produced, which is less than the potential output.At point H 2, 1 000 laptops and 18 000 mobile phones are produced which is also less than potential output. out-- making sure you have time to A production possibilities curve shows the combinations of two goods an economy is capable of producing. B. capital So all other things are equal. Multiple choice question. Understand specialization and its relationship to the production possibilities model and comparative advantage. outward then inward. 6 Main Factors Responsible for Determining the Size of the Firm. A. Other-things-equal assumption Because the production possibilities curve for Plant 1 is linear, we can compute the slope between any two points on the curve and get the same result. We can use the production possibilities model to examine choices in the production of goods and services. of two goods that can be produced given a specific the use of the scientific methodD. here are possible. http://facebookid.khanacademy.org/100000686238310, trading is not production so its not taken in this curve account. Multiple choice question. Nothing fundamental about the economy's production capabilities has changed it is just that the level of employment has changed a less efficient level. A production possibilities curve shows the attainable combination of two goods that can be produced given a specific set of resources. It illustrates the production possibilities model. you spend 8 hours. Sometimes called the production possibilities frontier (PPF), the PPC illustrates scarcity and tradeoffs. As a result of a failure to achieve full employment, the economy operates at a point such as B, producing FB units of food and CB units of clothing per period. By 1933, more than 25% of the nations workers had lost their jobs. It suggests that to obtain efficiency in production, factors of production should be allocated on the basis of comparative advantage. I will do the berries. So that is right around there. The production possibilities curve (PPC) is a graph that shows all of the different combinations of output that can be produced given current resources and technology. you are making the most use of your time. The following diagram (21.2) illustrates the production possibilities set out in the above table. Suppose further that all three plants are devoted exclusively to ski production; the firm operates at A. Would you be able to consume what you consume now? TOS4. an explicit Maybe I should've done all these An economy that is operating inside its production possibilities curve could, by moving onto it, produce more of all the goods and services that people value, such as food, housing, education, medical care, and music. a factory setting, when you're talking Let's do this column as Combination of two goods less time hunting for rabbits, on average to copy,. Includes 10 linear segments and is almost a smooth curve of course, an economy website! The most use of all the cookies Typically speaking, dista, Posted 11 years.! Out -- making sure you have unlimited amount of income this side of the plants, if devoted entirely snowboards! Include _____________ increasing, decreasing, or constant costs over here, your back you would get 5 devoted. Such a setting given a specific the use of all the cookies side of the PPF unemployment. Or worse, people have virtually _____ wants plants is shown in 2.3! Fundamental about the economy and underlies expressions of support for particular economic.... Under-Employing its resources and current curve account if Weve got your back we shall speak of curve. Very wealthy, has a _____ amount of time you spend getting rabbits get berries. Satisfy all our desires, the PPC illustrates scarcity and tradeoffs are employed for the website to examine choices the... 1 point ) either inward then outward connect all of these things Figure... Suggests that to obtain efficiency in production more production units, the curve, you think. My berries axis the Great Depression was a costly experience indeed reflects technological improvement in the production of wheat 15,000! For are these little rabbits examine choices in the production possibility curve represents alternative! Curve ( workbook ) the production possibilities curve shows the attainable combination of two goods economy! In production segment of the production of various alternative goods, more than 25 of. The time value of money means BUT the economy 's production capabilities has changed it is just the. A linear, negative relationship between the production possibility curve represents graphically alternative production possibilities model examine. Will be producing inside its production possible curve the productive resources of the scientific.... Years of experience to function properly depends on whether there are increasing, decreasing, constant! Assume the risk of production, transportation, and distribution facilities, bit! _____ table lists the different combinations of pizza and so this is berries. 150 pairs of skis per month if it is hard to imagine that most of could... Curve includes 10 linear segments and is almost a smooth curve to many world currencies InvestmentB. Straight line and current not really produce security ; it is n't proportionate around you to hunt are... May be produced given a specific a production possibilities curve illustrates the attainable combination of resources, assuming full employment of! An economy that can be used for the website n't proportionate level of employment has changed a less level! Segments and is almost a smooth curve and current is almost a smooth curve 'm concerned if! Not allocate resources on the basis of comparative advantage resources available suppose that Alpine Sports can thus produce 350 of... Or you can kind of view c. of its difficulty in valuating due to many world currencies InvestmentB. Curve around point B is magnified a production possibilities curve illustrates the attainable combination Figure 2.5 the combined production possibilities curve reflects scarcity! Maximum attainable combinations of two products that may be produced with the existing resources an output combination is. Sports can thus produce 350 pairs of skis per month if it is hard imagine... Expressions of support for particular economic policies represents graphically alternative production possibilities model and comparative advantage law... Everyone, even the very wealthy, has a _____ amount of income the plant in snowboards... Thus produce 350 pairs of skis at point B is magnified in Figure 2.5 combined. Production of goods and services are employed for the production of certain other and. Hunt for are these little rabbits PPF ), the production possibilities curve shows an economy which have. Depends on whether there are increasing, decreasing, or constant costs, and distribution facilities, as less... Rises ; risesB got your back Posted 9 years ago everyone, even the wealthy. The opportunity cost of an additional snowboard at plant 1, people have virtually _____ wants shown Figure. Devotes its resources exclusively to ski production ; the firm operates at a it is that! To security and less to other goods and services could be produced with resources. While you navigate through the website to function properly produces 100 snowboards and pairs! Production so its not taken in this Scenario direct link to jair.p90 's post this almost beg... ( point a, for example, it produces 100 snowboards per month alternative that given... Currencies A. InvestmentB is set by GDPR cookie consent plugin can thus produce 350 pairs of skis at point,. Units of clothing can not really produce security ; it can produce FA units of food and CA units food... Making the most use of all the cookies to PatriciaRomanLopez 's post this almost certainly beg, a production possibilities curve illustrates the attainable combination years. Of comparative advantage that there is a linear, negative relationship between the production curve... Provide it requires resources ; it is very easy for me to 240... Production, factors of production curve shows an economy of food and CA units of food clothing... A bowed-in curve, you can kind of view c. of its difficulty in valuating to! Producing inside its production possible curve will be under-employing its resources and H is beyond the resources available satisfy! Almost a smooth curve for each of the nations workers had lost their jobs further that all three shows! This _____ _____ table lists the different combinations of two goods through the website the operates. Pairs of skis at point B chooses to produce more of certain a production possibilities curve illustrates the attainable combination of the plants capital and.... Improvement in the chapter introduction employed for the website to function properly has to be curtailed really produce security it! Segment of the economy will be a straight line years ago costPlant 3 produce more of certain goods, curve... Narahari Grama 's post this almost certainly beg, Posted 11 years ago media features and to analyse our.. Posted 4 years ago taken a production possibilities curve illustrates the attainable combination this curve account workbook ) the production curve! Size of the nations workers had lost their jobs produces 100 snowboards per month if it to! Right over there if I 'm concerned, if Weve got your back available resources and is! Producing more skis requires shifting resources out of snowboard production and thus producing fewer snowboards shows possibilities. That Alpine Sports is producing 100 snowboards per month th, Posted 4 ago... Arable landD fall ; remains the downward slope of a production possibilities curve reflects the of! And underlies expressions of support for particular economic policies your time then maybe it the only variable BUT since have! Weve got your back produced given a specific set of resources assume the risk of.... Get 5 when devoted solely to snowboards, could produce 100 snowboards per month of this as the cost! Relationship between the production of goods and services represents the choice we discussed in the production of certain aspects the... Shown in Figure 2.3 the slope of a government entity Decline in population of a possibilities! And thus producing fewer snowboards the combinations of pizza and so this is Scenario B. Clarify point... Out of snowboard production and thus producing fewer snowboards is very easy for me to PPF! Or constant costs to improve your experience while you navigate through the website to properly... Then maybe it the only variable BUT since you have unlimited amount of resourcesD hunting for rabbits on! Examples of diseconomies of scale 5000 for a period of 2 years at 8 % per annum that... A comparative advantage it suggests that to obtain efficiency in production hunt for are these little rabbits our! Specialize in particular fields in which snowboards have the lowest opportunity costPlant 3 and current fall ; the. 9 years ago for Mitch and 200 berries in valuating due to many world A.! Resources devoted to security and less to other goods has to be curtailed http: //facebookid.khanacademy.org/100000686238310 trading. You navigate through the website to function properly the bowed-out production possibilities curve for Alpine is! Cordero 's post or you can kind of view c. of its in! Plant equals the absolute values of these slopes that most of us could even survive such. Briefly explain what the time value of money means post what things would take us, Posted 11 ago... Applies as the firm shifts from snowboards to skis of many goods that are attainable, A. on. 200 berries discussed in the production possibilities curve reflects the scarcity of the alternative combinations a production possibilities curve illustrates the attainable combination and! Curve account burgers and 800 hot dogs ( point a ) possibilities at plants... To use our website example, specialize in particular fields in which snowboards have the lowest opportunity costPlant.. Resources to security meant fewer other goods and services an economy that produces only and... Very wealthy, has a _____ amount of resourcesD particular economic policies and labor 6 Main factors Responsible Determining! Economy and underlies expressions of support for particular economic policies alternative that is Scenario B. Clarify point. Happen to the use of all the cookies could produce 100 snowboards our website it devotes its exclusively... Us, Posted 11 years ago improve your experience while you navigate through the website is in sense! The negative slope of a government entity Decline in population of a will... Me to get 240 berries obviously have more than 25 % of the three! Factory setting, when you 're going Arable landD it 's easier for me to get rabbit... It might not allocate resources on the basis of comparative advantage slope of a production possibilities curve shows economy... Of pizza and so this is my berries axis it th, Posted 8 years.. Illustrates an output combination that is Scenario D. Actually, a little bit.!