The political party that is in power determines the position and shape of the production possibilities frontier that constrains the choices of the economy. True False
Upstudy AI Solution
Answer
Solution
Answered by UpStudy AI and reviewed by a Professional Tutor


Mind Expander
While the political party in power can influence economic policies and priorities, the production possibilities frontier (PPF) is a theoretical model representing the maximum output combinations of two goods that an economy can achieve given its resources. It is shaped by factors such as technology, resource availability, and efficiency, rather than merely by the political party in power. So, the correct answer is: False. The PPF can shift with changes in resources and innovation, regardless of who holds political office. Think of it as the canvas of economic potential, painted by various factors like society's skills and technologies, not just the brush strokes of political ideology!