51) A point inside a production possibilities curve indicates A) resources are not being used efficiently. Opportunity costs are constant. (iii) Non-availability of equipments, or (iv) Technology becomes obsolete. A production possibilities curve will shift inward When the unemployment rate increases. 13 grudnia 2020 (C) that more output could be produced with the available resources. Any point inside the production possibilities curve indicates that A the from ACCT 5996 at University of New South Wales How is the curve constructed? a. efficient but not feasible. The production possibility curve represents the maximum number of output combinations that we can produce by maximizing the use of existing resources. C. the realization of allocative efficiency. Chapter 2, Problem 4CQQ. C) the law of increasing relative cost. Any point inside the production possibilities curve is a (an) a. efficient point. QUESTION 40 1 points Sen Are Any point inside the production possibilities curve Indicates: OA de presence of technological change OR that resources are imperfectly substitutable among aternative uses that more output could be produced with the available resources Ode presence of inflationary presres. Production possibility curve. Other things equal, this economy will achieve the most rapid rate of growth if: it chooses point A Refer to the above diagram. B) that resources are imperfectly shiftable among alternative uses. Any point inside the PPC indicates the underutilisation of resources due to : (i) Wear and tear or breakdown of machinery, (ii) Saturation of some natural resources. A production possibility curve (sometimes known as a production possibility frontier, boundary or line) is a curve which indicates the maximum combination of any two goods which an economy could produce if all its resources were (a) fully employed and (b) organised as efficiently as possible. Answer Save. b. unfeasible point. B) resources are being used very efficiently. Any point inside the production possibilities curve indicates: that more output could be produced with available resources. 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. That applies both at the micro (company) and macro (economic) level. d. maximum output combination. Relevance. It represents something to be achieved in the future when more technology or labor are available. Minimum production combinations. Chapter 2, Problem 2CQQ. D. A nonfeasible production combination . The answer is a.) Answer: D 47. check_circle Expert Solution. C. Economic growth. Any point inside the production possibilities curve indicates A the presence of from CUSHMANGT 032 at University of Texas 85. Any point inside a production possibilities curve indicates that the economy is using Diff: 2 all its available resources and technology. 44. unlimited resources must satisfy scarce desires of people. A point lying inside the production possibilities curve a. indicates that resources are not being fully or efficiently used. In drawing the production possibilities curve we assume that: A) technology is fixed. Here is a guide to graphing a PPF and how to analyze it. B. the presence of inflationary pressures. (B) the presence of inflationary pressures. Any point outside the PPC showcases a stage of production which the … Answer: F 25. (D) that resources are imperfectly substitutable among alternative uses. ← Prev Question Next Question → Related questions 0 votes. An output combination that is unobtainable with the current. When resources are expanding. d. maximum output combination. While a point inside the production possibilities curve indicates that both more laptops and mobile phones can be produced, a point on the curve indicates that it is not possible to increase the production of one good without decreasing the production of the other good. arrow_forward. Check out a sample textbook solution. Resources however, are not always suitable to produce two different goods: Land is not identical. D) that more output could be produced with available resources. 35) A production point that lies outside the Production Possibilities Curve (PPC) A) denotes inefficiency. c. requires more resources than are presently available. 1 answer. The PPC shows the combination of goods and/or services that can be produced with the available shared resources. D. that resources are imperfectly shiftable among alternative uses. B) inefficiency in production. The production possibilities frontier (PPF for short, also referred to as production possibilities curve) is a simple way to show these production tradeoffs graphically. A) a lack of sufficient supply. All choices along the curve shows production efficiency of both goods. Economists describe it in a two-dimensional graph, where each axis represents the amount of output of each item. So if a firm is operating inside the production possibility curve, then it indicates that the firm is not utilizing the supplied resources and technology efficiently. Diff: 1 Answer: T 26. What does concavity implies in the context of Production Possibility Curve? Any point inside the production possibilities curve indicates: A) the realization of allocative efficiency. d. neither efficient nor feasible. Could indicate that resources are misallocated. Any point inside the production possibilities curve indicates: that more output could be produced with available resources. If an economy is operating at a point inside the production possibilities curve, it indicates that: society's resources are being poorly utilized. If resources are underemployed, then the economy is producing as much as possible. Production possibility curve shows the different combinations of the production of two commodities that can be achieved in an economy given the resources and technology which are to be fully utilized. d. is a point either on the far left or far right on the curve. c. inefficient point. D) the law of decreasing relative cost. Any point inside the production possibilities curve indicates: (A) the presence of technological change. News. b. illustrates resources being used to their fullest potential. The PPF simply shows the trade-offs in production volume between two choices. C) opportunity costs are constant. Seraph. d. represents an increase in resources. B) indicates unemployment. arrow_back. c. is something outside the PPF. Refer to the above diagram. C) the presence of inflationary pressures. Favorite Answer. Production points inside the curve show an economy is not producing at its comparative advantage. A point beneath the curve indicates inefficiency, and a point beyond the curve indicates impossibility. 2 Answers. A. Want to see the full answer? This means that: 1) If a constant amount of good 'x' is given up, a constant amount good 'y' can be produced 2) The resources employed to produce good x is perfectly suited to produce good 'y'. You might … there is … Any point inside the production possibilities curve indicates: A. that more output could be produced with available resources. Any time the PPC curve shifts outward it indicates economic growth, however reaching a point outside of an PPC can be reached by using trade. More generally, the absolute value of the slope of any production possibilities curve at any point gives the opportunity cost of an additional unit of the good on the horizontal axis, measured in terms of the number of units of the good on the vertical axis that must be forgone. 01. of 09. 34) All points inside the production possibilities curve indicate. A point inside a production possibilities curve indicates Resources are not being used efficiently. showing a straight line production possibility curve indicates Constant Opportunity cost. b. unfeasible point. b. is wrong because this would be a point outside the production possibilities frontier. Resources are being used very efficiently. When production is inefficient. a point inside the production possibilities frontier is. See solution. Maximum production combinations. For example, the combined output of the two goods can neither be at U nor H. (See Fig. E. None of the above. Any point inside the production possibilities curve is a(a n) a. efficient point. 1 decade ago. The production possibilities curve is also called the PPF or the production possibilities frontier. B. Other things equal, this economy will achieve the most rapid rate of growth if: it chooses point A Refer to the above diagram. Refer to the above diagram. c. both efficient and feasible. c. inefficient point. Definition of production possibilities curve. the production decisions are made by government. 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. 35. b. feasible but not efficient. 21.3) This is so because at U the economy will be under-employing its resources and H is beyond the resources available. 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