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Category: Research Paper

Subcategory: Business

Level: College

Pages: 3

Words: 825

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The production possibility frontier in the field of macroeconomics is a representative of the point at which a nation’s economy is efficiently thriving in the production of its goods as well as services, and as a result, can manage to allocate the resources such as labor and capital in the best means possible. Primarily, the production possibility frontier (PPF) is essential to the economy of a country since it indicates whether the quantities of goods or services are efficiently produced or not. If the PPF suggests another value of the amount produced contrary to what is produced in reality, it hints that the economy will dwindle (Brea‐Solís, Casadesus‐Masanell, & Grifell‐Tatjé, 2015). In essence, the PPF is an indicator of the limits existing to production and the economy of a given country should be prepared enough to decide on what combination of goods as well as services need to be correctly produced.
The PPF graphs or curves showcases the maximum levels of production possible for a given level of the other by assuming the existing state of technology adopted. Based on the decision called for by the indication of a PPF curve, the economy of a country can be made to divert the resources from other goods for one good to be only produced by producing fewer quantities of the others.
Graphically, the production Possibility frontier for the United States and Brazil is best done by measuring soda vertica…

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