Question

In a certain economy, jam and bread are produced, and the economy currently operates on it's production possibilities frontier. Which of the following events would allow the economy to produce more jam and more bread, relative to the quantities of those goods that are being produced now?
The economy experiences economic growth T/F

Answer 1

Answer:

True

Explanation:

The reason is that the companies would only increase its production if the company feels that the company can sell its product in the national or international market. So using unemployed workers and idle capacity in producing jam and bread are waste of resources if their is no demand of the product.

When the economy is growing this means that the companies are producing more because it feels that they must produce more to export and meet the existing market demand.