Global managerial economics ip1 | Business & Finance homework help
The production possibility frontiers for Brazil and the United States are determined by their respective levels of resources and technology. In Brazil, the PPF is likely to be shaped by its limited access to capital and labor, as well as its mostly agricultural economy which is vulnerable to natural disasters. This means that their maximum output of goods and services will be mainly concentrated in primary industries such as farming while limiting their ability to produce advanced manufactured goods.
In comparison, the PPF for the United States is more expansive due to its high level of technological advancements and developed infrastructure. This affords it greater opportunities for producing a wider array of goods and services including those from secondary or tertiary industries such as manufacturing or finance. Furthermore, its relative abundance of resources also gives it an advantage over other countries in terms of efficient utilization of existing inputs. As a result, its PPF would likely display more potential for output overall than most other nations including Brazil.