What is a production-possibility curve


Response to the following questions:

1. List some major political institutions and indicate how they translate desires into collective agreements.

2. What is a production-possibility curve? Show how such a curve can be used to explain how private goods and services must be sacrificed to obtain government goods and services.

3. What is the real cost of government expenditures? Think about your estimate of the taxes you pay and what you could have purchased with that money.

 

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Cost Accounting: What is a production-possibility curve
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