Which of the following does not belong on an axis of a production possibilities frontier graph? a) bread b) wheat c) medical services d) land e) air

Question

I really need help with this!

Answer 1

A production possibilities frontier, sometimes called a production possibilities curve, is a simple economic model that shows the possible combinations of goods or services that can be produced by an economy, country or firm. Economists choose products or types of products and plot the possible combinations of output. This way you can see the opportunity cost, which is what is given up, when the production is changed from one point to another. The output (goods and services) are created using the given resources, land, labor and capital. Land (natural resources), labor (human resources) and capital (reusable, human made resources) are all known as inputs. Because of this, bread, wheat and medical services are all considered output and can be placed on either axis of a PPF. Land and air, however are not made by producers and can not be placed on the axis of a PPF.

I suppose in a science fiction situation where air had to be manufactured on a different planet, air could be considered an output, but in modern times on Earth, it is not.

Answer 2

The answer is both D) and E) do not belong. Land and Air are resources while the other three are outputs. The production possibilities frontier show us all the possible allocations of outputs where we are using all of our resources efficiently, it is not possible to produce more land or more air, you might argue that maybe there are some special cases for example if we planted more trees or put our resources into discovering another planet we could produce both more air and land but keeping it simple the answer is both D and E.