Attainable- it is retrievable to produce trucks and boats
Point B- in the middle, always efficient . producing equal trucks and cars
Point A- efficient but producing more boats
Point C- efficient but producing more trucks
Point D- attainable inside curve but inefficient. under utilizing resources
1) decrease in the population
2) under employment of unemployment
3)war, famine
Point E- Unattainable
1) technology improvement
2) economic growth
3) discovering new resources
Key Assumptions
1. two goods are produced
2. full employment
3. fixed resources (land, labor, capital)
4. fixed state of technology
5. no international trade
I'm kinda confuse about this graph, because of the dotted line(it got me confusing). it would be better if you find a graph without a dotted line. :)
ReplyDeleteThe information in your blog is very detailed and helpful. Your detailing of the points on the graph are very clear and easy to understand. Overall, i think the blog could use a little bit more information about supply and demand, but the information that is given is very useful and clear. Thanks for your blog!
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