Which of the following is a possible explanation for this outcome? a. its resources are not being used efficiently. A. nations. Understanding the PPF . A point inside the production possibilities curve represents a combination of goods that is. The PPF is also referred to as the production possibility curve or the transformation curve. resources are fully employed. B) an increase in population size. The production possibilities frontier (PPF for short, also referred to as production possibilities curve) is a simple way to show these production tradeoffs graphically. 2.An effective price ceiling will (a)result in a product surplus. Experienced an inward shift of its production possibilities curve . C) an economic growth. Thinking back to what we’ve learned, that’s any point where the economy isn’t producing as much as it could. D) a technological advancement. A point beneath the curve indicates inefficiency, and a point beyond the curve indicates impossibility. The following graph is the production possibilities curve of a nation: Refer to the above graph. A point inside of the production possibilities curve is inefficient because it is possible to produce more of one or both goods without opportunity cost. A nation is producing at a point inside of its production possibility curve. If a country does not use its resources efficiently (unemployment), then it is operating inside the production possibilities curve (point G). If the economy is stagnant at, say point S, economic growth will shift it to point A on the production possibility curve PP, and a further increase in the resources may shift the production possibility curve towards the right to P 1 P. The economy will produce at point C. Why point С? resources are unemployed. C. is illustrated by a point outside the production possibilities curve. If there are idle or inefficiently allocated factors of production, the economy will operate inside the production possibilities curve. They are being over efficient. d. represents an increase in resources. Here is a guide to graphing a PPF and how to analyze it. The production possibilities curve is an illustration of what? b. illustrates resources being used to their fullest potential. (a)unattainable; attainable (b) the maximum possible; below the maximum possible (c) attainable; unattainable (d) below the maximum possible; the maximum possible. In other words, the economy can produce at any point on or inside the production possibilities frontier. The production possibilities curve illustrates the basic principle that. It is also known as transformation curve. d. can each be illustrated by a point outside the production possibilities curve. Opportunity costs and trade-offs . Points inside the production possibility curve indicates that the society concerned is not making full and efficient use of its resources and consequently fewer needs and wants are satisfied than is possible. It is impossible . A movement along the production possibilities curve would imply that: A. the labor force has grown. unattainable. Given its production possibilities curve, the optimal combination of outputs for a society: a. is beyond the production possibilities curve. Points within the curve show when a country’s resources are not being fully utilised A production possibility frontier is used to illustrate the concepts of opportunity cost, trade-offs and also show the effects of economic growth. Points on the production possibilities curve thus satisfy two conditions: the economy is making full use of its factors of production, and it is making efficient use of its factors of production. ANS: A PTS: 1 DIF: basic OBJ: factual TOP: Inefficient Points 86. c. holding constant the production of another good. Any point inside a production possibilities curve is a. better than points on the production possibilities curve b. allocatively efficient but technologically inefficient c. associated with inefficient use of unemployment of some resources d. associated with movements along the production possibilities curve e. associated with constand opportunity costs. Given a production possibilities curve, a point: a. inside the curve represents unemployment. 3) If a nation is currently operating at a point inside its production possibilities curve, it: b. increased. So like our simple example, we plot a point that is inside the production possibilities curve! 9. ANS: C PTS: 1 158. Correct! We conclude that attainable combination points are (on/inside/outside) the production possibilities curve. If a point lies inside the curve, this tells the company what? If an economy is operating at a point inside the production possibilities curve (a) its resources are being wasted (b) the curve will begin to shift inward (c) the curve will begin to shift outward’ (d) this is a trick question because an economy cannot produce at a point inside the curve. A. causes the production possibilities curve to shift outward. c. the curve will begin to shift inward. D. society has chosen a different set of outputs. d. the curve will begin to shift outward. individuals. c. decreased. e. is not an attainable combination. d. producing at a point on a corner of the curve. d. none of the above. Also, any point inside the PPF is inefficient because at that point the output is greater than the output that the existing resources can produce. Prof. Paul A. Samuelson used the concept of the production possibility curve to explain the economic problem of a society. Went to a point inside its production possibilities curve. An outcome is efficient if the economy is getting all it can from the scarce resources it has available. When it is at full employment, it operates on the PPC. Therefore, any point inside the production possibility curve indicates under utilization of resources because the economy can produce more with the given resources and any point beyond the production possibility curve cannot be achieved because the economy does not have the required resources to produce such amount of ouput. c. outside the curve is currently unattainable. E) an improvement in … When an economy is in a recession, it is operating inside the PPC. Production Possibility Curve (PPC) is the locus (the path of a moving point) of various combinations of two commodities which can be produced with given level of resources and technology. D. why the demand curve is downsloping. Find the combination of 2,000 WMD and 40,000 pounds of Food. Points outside the curved line (such as point X) represent a combination of outputs that are impossible for us to produce, taking into account available resources and technical capabilities. b. on the curve represents full employment. In macroeconomics, the PPF is the point at which a … 88. This is a trick question because an economy cannot produce at a point inside the curve. there is economic growth. If an economy is operating at a point on the production possibilities curve, all resources are used, and they are utilized as efficiently as possible (points E, C, B, A, and D). The marginal opportunity cost of the fourth unit of bread is: 3 units of drill presses 4 units of drill presses 0 unit of drill presses 1 unit of drill presses. d. all of these. Opportunity cost is inefficient. C. Increasing marginal cost of production explains: A. the law of demand. answer choices . 1.A point inside the production possibilities curve is _____, while a point outside the curve is _____. The combination points of product A and product B that we can produce efficiently will form a concave curve, which we call the production possibility curve. If an economy is operating at a point inside the production possibilities curve? c. requires more resources than are presently available. Concepts covered include efficiency, inefficiency, economic growth and contraction, and recession. 1. answer choices . b. A point outside the production possibilities curve represents a combination of goods that is. b. increasing the production of another good. 2. Production-Possibility Frontier delineates the maximum amount/quantities of outputs (goods/services) an economy can achieve, given fixed resources (factors of production) and fixed technological progress.Points that lie either on or below the production possibilities frontier/curve are possible/attainable: the quantities can be produced with currently available resources and technology. But it cannot produce at points outside the frontier. If the country decides to ramp up its sugar production, using the existing fixed resources, it has to lower its pizza production. B. can exist at any point on a production possibilities curve. can each be illustrated by a point inside the production possibilities curve. Only opportunity costs ... 30 seconds . They are not efficient. b. If an economy is producing at a point inside a production possibilities curve: A. the economy is efficient. In this video, Sal explains how the production possibilities curve model can be used to illustrate changes in a country's actual and potential level of output. A point lying inside the production possibilities curve a. indicates that resources are not being fully or efficiently used. B. productivity has increased. Label the Axes . Q. 01. of 09. 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