Explain why operating inside a production possibilities frontier is a waste of resources
1. Using a production possibilities frontier, explain how each of economic growth, technological advances or the introduction of trade can enable an economy to achieve command over a combination of goods and services that it might otherwise not have access to.
2 Using production possibilities frontier, explain the differences between absolute advantage and comparative advantage and why trade is beneficial to all participants.
3 Explain why operating inside a production possibilities frontier is a waste of resources and demonstrate the advantages and disadvantages of an economy emphasizing the production of capital goods over the production of consumption goods. what differences might the prospect of international trade make to the decision of what goods to produce?
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