What would be the production possibility frontiers for Brazil and the United States?

Brazil’s and America’s production possibilities frontiers are determined by the respective level of technology and resources. Brazil’s PPF will be determined by the limited capital, labor and agricultural economy, which are vulnerable to disasters. The maximum amount of their goods and services is likely to be concentrated in the primary industry, such as agriculture. This will limit their capacity to manufacture advanced goods.

The PPF of the United States, in comparison, is larger due to the high-level technological advances and the developed infrastructure. The United States has greater production opportunities, especially in the secondary and tertiary industry sectors like manufacturing or finance. Its relative wealth of resources is also an advantage for other countries when it comes to efficient input utilization. Its PPF will likely show more output potential than other countries, including Brazil.