Question

1. (15 points) your country has lots of labor and excellent technology. alone, what economic aspect are you missing to be able to expand your production possibilities frontier? ________ if you are not alone, how can you also expand your production possibilities frontier? ________

Explanation:

1. For the first blank: The production possibilities frontier (PPF) is determined by factors like labor, technology, and capital (including physical capital like machinery, infrastructure, or financial capital). With labor and technology, capital is a key missing factor to expand PPF alone.
2. For the second blank: When not alone (i.e., in a global or trade - enabled context), trade (specialization and trade with other countries) allows a country to access resources it lacks, import capital goods or raw materials, and export goods it produces efficiently. Also, foreign investment can bring in capital, technology, or management expertise, and technology transfer through international collaboration can improve production capabilities, all of which expand the PPF.

Answer:

First blank: Capital (e.g., physical capital like machinery, infrastructure, or financial capital)
Second blank: Through trade (specialization and trading with other nations to access needed resources), foreign investment (to gain capital/technology/management), or international technology transfer (to improve production capabilities)