contestada

Suppose that a politician wants to build more production facilities for solar power and wind power. At the same time, the politician is unwilling to cut any other programs. If the resources that would be used to produce the solar and wind power facilities are already being efficiently used in other programs, where is the point the politician is trying to reach located on the production possibilities frontier?

Respuesta :

Answer:

The politician is trying to reach a point above the production possibility frontier.

Explanation:

Suppose that a politician wants to build more wind power and solar power production facilities. The resources that are to be spent on wind and power facilities are already being efficiently used in other programs. But the politician is not willing to decrease expanse on any other program.  

We know that to increase expense on one alternative we need to decrease expense on others. If resources are being efficiently used, to spend on wind and solar power facilities the economy will need more resources.  

This means that the politician is trying to reach a point higher than the production possibility frontier.

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