Question

Harry produces 2 balloon rides and 4 boat rides an hour. Harry could produce more balloon rides without producing fewer boat rides. Harry is ___________________ his production possibilities frontier.

a. producing on
b. producing outside
c. moving along
d. producing inside

Answer 1

Answer:

Producing inside PPF & moving along (towards) PPF

Explanation:

Production Possibility Frontier is combination of two goods than an economy can produce , given resources & technology.

It is downward sloping because two goods are inversely related : Given same resources & technology - economy can increase production of one good by decreasing the production of other good & vice versa.  

Any point on PPF denotes full efficient utilisation of resources, any point inside / below PPC denotes under efficient utilisation of resources , any point above / outside PPC is unattainable since its beyond economy's full potential.

Harry been able to increase production of a good (balloon rides) without decreasing production of the other (boat rides). It implies he was not producing on PPF , since 'on PPC' production is full potential & anything beyond that can't be achieved(apart from movement on PPC sacrifising other good).

But , Also : Since he has increased a good's production without decreasing other , he is moving towards best efficient outcome (on the PPC) .

Answer 2

Based on the things that Harry can produce, we can say that he is d. producing inside his production possibilities frontier.

The Production Possibilities Frontier

• Shows the tradeoff between resources that we must make to produce certain goods and services.
• When one is at the frontier, they will have to give up one unit of a good to produce another good.

Because Harry doesn't have to give up any boat rides to produce any more balloon rides, he must be inside the frontier as there are still resources left to allow him to offer more of one good without reducing the other good.

In conclusion, option D is correct.

Find out more on the production possibilities frontier at https://brainly.com/question/25071524.