All choices along the curve shows production efficiency of both goods. Any point inside the production possibilities curve is a(a n) a. efficient point. unlimited resources must satisfy scarce desires of people. Chapter 2, Problem 2CQQ. a. efficient but not feasible. B) resources are being used very efficiently. b. is wrong because this would be a point outside the production possibilities frontier. The answer is a.) It represents something to be achieved in the future when more technology or labor are available. arrow_back. Refer to the above diagram. Answer: D 47. Label the Axes . 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. An output combination that is unobtainable with the current. If resources are underemployed, then the economy is producing as much as possible. Any point inside the production possibilities curve indicates A the presence of from CUSHMANGT 032 at University of Texas b. unfeasible point. Economists describe it in a two-dimensional graph, where each axis represents the amount of output of each item. Resources however, are not always suitable to produce two different goods: Land is not identical. E. None of the above. B. Chapter 2, Problem 4CQQ. Want to see the full answer? Opportunity costs are constant. Minimum production combinations. The PPF simply shows the trade-offs in production volume between two choices. The production possibilities frontier (PPF for short, also referred to as production possibilities curve) is a simple way to show these production tradeoffs graphically. 34) All points inside the production possibilities curve indicate. Relevance. c. requires more resources than are presently available. E. None of the above. C. Economic growth. When production is inefficient. Any point outside the production possibilities curve illustrates:? When resources are expanding. the production decisions are made by government. B) that resources are imperfectly shiftable among alternative uses. Resources are being used very efficiently. A) a lack of sufficient supply. arrow_forward. 35. An economy is producing efficiently when all factors of production are used in their most 85. 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. Any point inside the production possibilities curve indicates: A. that more output could be produced with available resources. Definition of production possibilities curve. 01. of 09. c. inefficient point. Any point inside the production possibilities curve indicates: that more output could be produced with available resources. 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. 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. Answer Save. A point inside a production possibilities curve represents things that can be produced. 35) A production point that lies outside the Production Possibilities Curve (PPC) A) denotes inefficiency. In drawing the production possibilities curve we assume that: A) technology is fixed. Favorite Answer. Refer to the above diagram. Could indicate that resources are misallocated. A point inside the production possibilities frontier is. Any point inside the production possibilities curve indicates: that more output could be produced with available resources. Here is a guide to graphing a PPF and how to analyze it. 2 Answers. Maximum production combinations. 1 decade ago. The production possibilities curve is also called the PPF or the production possibilities frontier. check_circle Expert Solution. The production possibility curve represents the maximum number of output combinations that we can produce by maximizing the use of existing resources. What does concavity implies in the context of Production Possibility Curve? (B) the presence of inflationary pressures. A point lying inside the production possibilities curve a. indicates that resources are not being fully or efficiently used. C) the presence of inflationary pressures. 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. 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. 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. 1 answer. B) indicates unemployment. D) that more output could be produced with available resources. D) the law of decreasing relative cost. Any point outside the PPC showcases a stage of production which the … A point inside a production possibilities curve indicates Resources are not being used efficiently. A production possibilities curve will shift inward When the unemployment rate increases. Production points inside the curve show an economy is not producing at its comparative advantage. c. is something outside the PPF. B) inefficiency in production. D. A nonfeasible production combination . 44. a point inside the production possibilities frontier is. d. maximum output combination. Other things equal, this economy will achieve the most rapid rate of growth if: it chooses point A Refer to the above diagram. c. inefficient point. C) the law of increasing relative cost. (iii) Non-availability of equipments, or (iv) Technology becomes obsolete. d. maximum output combination. News. A point inside a production possibilities curve represents things that can be produced. Seraph. How is the curve constructed? b. illustrates resources being used to their fullest potential. For example, the combined output of the two goods can neither be at U nor H. (See Fig. Any point inside the production possibilities curve indicates: (A) the presence of technological change. Any point inside the production possibilities curve is a (an) a. efficient point. Any point inside a production possibilities curve indicates that the economy is using Diff: 2 all its available resources and technology. b. unfeasible point. 13 grudnia 2020 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. Check out a sample textbook solution. D. that resources are imperfectly shiftable among alternative uses. d. neither efficient nor feasible. 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. A point beneath the curve indicates inefficiency, and a point beyond the curve indicates impossibility. A. ← Prev Question Next Question → Related questions 0 votes. d. represents an increase in resources. (D) that resources are imperfectly substitutable among alternative uses. B. the presence of inflationary pressures. Any point inside the production possibilities curve indicates that A the from ACCT 5996 at University of New South Wales 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'. Answer: F 25. Other things equal, this economy will achieve the most rapid rate of growth if: it chooses point A Refer to the above diagram. That applies both at the micro (company) and macro (economic) level. Diff: 1 Answer: T 26. 21.3) This is so because at U the economy will be under-employing its resources and H is beyond the resources available. The PPC shows the combination of goods and/or services that can be produced with the available shared resources. there is … showing a straight line production possibility curve indicates Constant Opportunity cost. It is to be remembered that all the points representing the various reduction possibilities must lie on the production possibility curve AF and not inside or outside of it. If an economy is operating at a point inside the production possibilities curve, it indicates that: society's resources are being poorly utilized. 51) A point inside a production possibilities curve indicates A) resources are not being used efficiently. You might … c. both efficient and feasible. C. the realization of allocative efficiency. 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