Answered: Explain why societies cannot make a…

Explain why societies cannot make a choice above their production possibilities frontier with own resources and should not make a choice below it.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 13RQ: Explain why societies cannot make a choice above their production possibilities frontier and should...

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Welfare Analysis

Welfare analysis of the society is related to welfare economics. From the economic point of view former welfare economics refers to that subject which uses the techniques of microeconomics to analyse and evaluate the welfare at the economic or aggregate level.

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Explain why societies cannot make a choice
above their production possibilities frontier with
own resources and should not make a choice
below it.

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Step 1: Introduce production possibilities frontier

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Step 2: Explain about the choices of the society using the concept of PPF

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