1. Draw and explain a production possibilities frontier for an economy that produces milk and cookies. What happens to this frontier if disease kills half of the economy's cow population?
2. Use a production possibilities frontier to describe the idea of "efficiency."
3. What is the difference between a positive and a normative statement? Give an example of each.
4. Why do economists sometimes offer conflicting advice to policymakers?© BrainMass Inc. brainmass.com March 21, 2019, 12:21 pm ad1c9bdddf
The solution utilizes a production possibilities frontier to describe the idea of "efficiency."