Consider the following production possibilities frontier modelfor an economy that produces only two

Consider the following production possibilities frontier modelfor an economy that produces only two goods: alfalfa andsmartphones. 020406080100100806040200SMARTPHONES (Millions)ALFALFA (Millionsof bushels)PPF Which of the following is true regarding this economicmodel? In order to construct such a model, an economist would need reallife data regarding countries that only produce two goods. The fact that there are only two goods produced in thistheoretical economy, when, in reality, economies produce many moretypes of goods, means this model is generally useless. The fact that there are only two goods produced in thistheoretical economy is a simplifying assumption that still allowseconomists to demonstrate key economic concepts. This PPF is not an economic model. . . .

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