Brazil faces a tradeoft on its PPF because if it increases the quantity of food produced __ A. it stops producing ethanol B. production becomes inefficient C. it decreases the quantity of ethanol that it produces D. it increases the quantity of ethanol that it produces

Question

Brazil faces a tradeoft on its PPF because if it increases the quantity of food produced __ A. it stops producing ethanol B. production becomes inefficient C. it decreases the quantity of ethanol that it produces D. it increases the quantity of ethanol that it produces

Answer 1

C. it decreases the quantity of ethanol that it produces

Answer 2

## Step 1The Production Possibility Frontier (PPF) is a curve that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized. In this case, the two goods are food and ethanol.## Step 2The PPF assumes that resources are fixed and fully utilized. Therefore, if Brazil increases the production of one good, it must decrease the production of the other good. This is because the resources used to produce one good cannot be used to produce the other good at the same time.## Step 3In this case, if Brazil increases the production of food, it must decrease the production of ethanol. This is because the resources used to produce food cannot be used to produce ethanol at the same time.

Soru

Brazil faces a tradeoft on its PPF because if it increases the quantity of food produced __ A. it stops producing ethanol B. production becomes inefficient C. it decreases the quantity of ethanol that it produces D. it increases the quantity of ethanol that it produces

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