Can this economy produce 6 units of guns and 12 units of butter? explain

Question

Adrien Duran

Business

25 January, 04:36

Can this economy produce 6 units of guns and 12 units of butter? explain

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Answers (1)

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Ruiz · Answer 1

Guns and butter are the example of production possibility frontier (PPF)

Explanation:

Production possibility frontier is a graphical presentation that shows two goods combination and shows how these goods would be produced with efficient utilization of resources.

Guns and butter shows a relation in case of production possibility frontier, it shows how the investment should be done with the minimum resources present in the economy. If the economy is having proper resources for the production of guns and butter then 6 units of guns and 12 units of butter can be produced but while taking decision a nation should be rational, that is how to use the resources.