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Solved: True or false Explain your answer. a. An increase in the amount of resources
Chapter 0, Problem 1(choose chapter or problem)
True or false? Explain your answer. a. An increase in the amount of resources available to Tom for use in producing coconuts and fish does not change his production possibilities curve. b. A technological change that allows Tom to catch more fish relative to any amount of coconuts gathered results in a change in his production possibilities curve. c. Points inside a production possibilities curve are efficient and points outside a production possibilities curve are inefficient.
Questions & Answers
QUESTION:
True or false? Explain your answer. a. An increase in the amount of resources available to Tom for use in producing coconuts and fish does not change his production possibilities curve. b. A technological change that allows Tom to catch more fish relative to any amount of coconuts gathered results in a change in his production possibilities curve. c. Points inside a production possibilities curve are efficient and points outside a production possibilities curve are inefficient.
ANSWER:Step 1 of 3
a.
The statement is false because Tom has the availability of more resources to produce coconuts and fish, for which the production possibilities curve will shift outward. This will occur because Tom can produce more output of both coconuts and fish.