1. Economic modelsConsider the following production possibilities frontier model for an economy that produces only two goods: bartey and cars.10080PPF2020406060100BARLEY (Miions of busheis)CARS (Miions) Which of the following is true regarding this economic model?O The fact that there are only two goods produced in this theoretical economy, when, in reality, economes produce many more types ofgoods, means this model is generaly useless.O This PPF is not an economic model.OIn order to construct such a model, an economist would need real ife data regarding countries that produce only two goodsO The fact that there are only two goods produced in this theoretical economy is a simplifying assumption thut stl alows economists todemonstrate key economic concepts

A production possibility frontier (PPF) shows the maximum possible output combinations of two goods…

Which of the following is true regarding this economic model? O The fact that there are only twe goods produced in this theoretical economy, when, in reality, economes produce many moe types goods, means this model is generally useless. O This PPF is not an economic model. OIn order to construct such a model, an economist wouid need real e data regarding countes that produce only tw goods The fact that there are only two goods produced in this theoretical economy is a simpifying aumption tht st aows ecinomsts demonstrate kery economic concepts

Which of the following is true regarding this economic model? O The fact that there are only twe goods produced in this theoretical economy, when, in reality, economes produce many moe types goods, means this model is generally useless. O This PPF is not an economic model. OIn order to construct such a model, an economist wouid need real e data regarding countes that produce only tw goods The fact that there are only two goods produced in this theoretical economy is a simpifying aumption tht st aows ecinomsts demonstrate kery economic concepts

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter1: Welcome To Economics!

Section: Chapter Questions

Problem 11RQ: What are three reasons to study economics?

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G, 5 Subject - economics
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